Jakarta, ThedailyID — Bank Indonesia (BI) has kept its benchmark interest rate at 5.75% following its Board of Governors Meeting on October 20-21, 2026.
BI Governor Destry Damayanti announced the decision at a press conference on Wednesday, October 21. The central bank also maintained its deposit facility rate at 5% and its lending facility rate at 6.5%.
“The Bank Indonesia Board of Governors Meeting on October 20-21, 2026, decided to maintain the BI Rate at 5.75%,” Destry said.
BI also strengthened incentives for domestic non-deliverable forward (DNDF) hedging instruments. The policy aims to attract foreign capital inflows, stabilize the rupiah, and deepen Indonesia’s money and foreign exchange markets.
Destry said the central bank would continue to prioritize exchange rate stability amid mounting external pressures. At the same time, BI aims to keep inflation within its target range of 2.5%, plus or minus 1 percentage point, in both 2026 and 2027.
“This monetary policy remains consistent with the strategy to stabilize the rupiah amid mounting external pressures, while also maintaining the inflation target of 2.5% plus or minus 1 percentage point in 2026 and 2027,” Destry said.
The decision keeps borrowing costs at the existing benchmark level while BI continues efforts to support currency stability and control inflation.
