Jakarta, ThedailyID — Bank Indonesia (BI) has kept its benchmark interest rate, the BI Rate, unchanged at 5.75% following its Board of Governors Meeting on August 18-19, 2026.
The central bank also maintained the Deposit Facility rate at 4.75% and the Lending Facility rate at 6.50%.
Acting BI Governor Destry Damayanti announced the decision at a press conference on Wednesday, August 19.
“The Bank Indonesia Board of Governors Meeting on August 18 and 19, 2026, decided to maintain the BI Rate at 5.75%,” Destry said.
BI said the decision was aimed at strengthening rupiah stability amid elevated global uncertainty. The central bank also wants to keep inflation within the government’s 2026-2027 target range of 2.5% plus or minus 1%.
“BI will also continue to expand incentive policies and other measures to increase foreign capital inflows and strengthen rupiah exchange rate stability,” Destry said.
The decision comes after BI raised its benchmark rate three times earlier this year.
BI first raised the rate by 50 basis points to 5.25% during its May 19-20 meeting. It then increased the rate by 25 basis points to 5.50% on June 9 before raising it again to 5.75% during the June 17-18 meeting.
The June increases came as the rupiah weakened sharply, at one point falling beyond Rp18,000 per US dollar.
With the latest decision, BI has opted to keep borrowing costs unchanged while continuing to focus on currency stability and inflation control.
