TEMPO.CO, Jakarta - Senior Deputy Governor of Bank Indonesia (BI) Destry Damayanti said the central bank’s decision to raise the benchmark interest rate, or BI-Rate, to 5.25 percent is aimed at restoring the attractiveness of rupiah-based assets for investors, thereby encouraging capital inflows back into domestic financial markets.
“The BI-Rate increase is necessary because we are facing a world where everything is higher for longer. That is the current situation,” Destry said at the National Conference on Regional Economic Development in Balai Kartini, Jakarta, on Monday, May 25, 2026.
She noted that US government bond yields continue to rise, alongside higher inflation in the United States and a strengthening US dollar.
Bank Indonesia has implemented seven measures to support the rupiah, ranging from intervention in money markets to tightening controls on dollar purchases without underlying transactions. However, Destry said these steps have not been sufficient, prompting the Board of Governors to raise the policy rate.
Still, she stressed that the BI-Rate hike does not indicate a withdrawal of support for economic growth, as the central bank continues to ensure adequate market liquidity.
Lawmaker Suggests BI Governor Resign Over Rupiah Fall
7 hari lalu
PAN politician urges Bank Indonesia Governor Perry Warjiyo to step down from his position as the rupiah continues to weaken, reaching record lows.
BI Remains Optimistic Over Rupiah Rebound Despite Pressure
12 hari lalu
In addition to currency market intervention, BI is implementing six policy measures to support rupiah stability.
Rupiah at 17,500: How Will Purbaya Assist Bank Indonesia?
13 hari lalu
Finance Minister Purbaya Yudhi Sadewa announces bond market interventions to support Bank Indonesia as the rupiah hits Rp17,500 per US dollar.
Will BI Slash Monthly Dollar Purchase Limit to $25,000?
19 hari lalu
BI Tightens Foreign Exchange Purchases, Rupiah Stability Efforts
Prabowo Approves 7 Bank Indonesia Measures to Strengthen Rupiah
19 hari lalu
Indonesian President Prabowo Subianto approved seven Bank Indonesia (BI) strategies to strengthen the rupiah exchange rate.
Why Did Bank Indonesia Cut Dollar Purchase Limit to US$50,000?
19 hari lalu
Bank Indonesia plans to implement new regulations for purchasing US dollars above US$25,000 per person, requiring the use of underlying documents.
Rupiah Hits 17,400; Bank Indonesia Vows Market Presence
20 hari lalu
Bank Indonesia maintains its market presence to stabilize the rupiah after it touched Rp17,405 per US dollar.
Why Bank Indonesia Sees Rupiah as Undervalued
28 hari lalu
Bank Indonesia Governor Perry Warjiyo states the rupiah is fundamentally undervalued at 17,200 per US dollar.
BI Governor, Purbaya Meet US-ASEAN Business Council at IMF Meeting
38 hari lalu
The Governor of Bank Indonesia also held a meeting with the IMF and discussed global geopolitical developments and uncertainties.
BI: Consumer Confidence Index Dips to 122.9 in March 2026
45 hari lalu
Bank Indonesia (BI) maintained that consumer confidence in economic conditions remains robust as it stays above the 100-point threshold.
