Bank Indonesia Keeps Rates Steady for 3rd Month

2026-09-23 07:25 By Chusnul Chotimah 1 min. read

Bank Indonesia (BI) maintained its key interest rate at 5.75% for the third straight meeting at its September 23 meeting, as expected, as the rupiah strengthened recently, boosted by capital inflows after volatility in the first half of the year.

The decision underscored the central bank's concerns about rupiah stability under newly appointed Governor Destry Damayanti, while keeping inflation within the target range and supporting GDP growth.

BI has raised rates by a total of 100 bps in May and June combined, bringing the policy rate to its highest level since April 2025 to attract foreign inflows and shore up the rupiah.

The annual inflation rate accelerated to 3.19% in August but remained within BI's 1.5%–3.5% target range.

BI expects inflation to remain within the government's 2.5% ± 1% target range and has maintained its GDP growth forecast of 4.9%–5.7% for 2026.

BI also kept the rates on its overnight deposit facility and lending facility unchanged at 4.75% and 6.5%, respectively.



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Bank Indonesia Keeps Rates Steady for 3rd Month
Bank Indonesia (BI) maintained its key interest rate at 5.75% for the third straight meeting at its September 23 meeting, as expected, as the rupiah strengthened recently, boosted by capital inflows after volatility in the first half of the year. The decision underscored the central bank's concerns about rupiah stability under newly appointed Governor Destry Damayanti, while keeping inflation within the target range and supporting GDP growth. BI has raised rates by a total of 100 bps in May and June combined, bringing the policy rate to its highest level since April 2025 to attract foreign inflows and shore up the rupiah. The annual inflation rate accelerated to 3.19% in August but remained within BI's 1.5%–3.5% target range. BI expects inflation to remain within the government's 2.5% ± 1% target range and has maintained its GDP growth forecast of 4.9%–5.7% for 2026. BI also kept the rates on its overnight deposit facility and lending facility unchanged at 4.75% and 6.5%, respectively.
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