September 23, 2026 | 03:40 pm
TEMPO.CO, Jakarta - Bank Indonesia kept its benchmark interest rate, the BI Rate, at 5.75 percent on Wednesday, September 23, 2026, as it sought to balance rupiah stability, inflation control, and economic growth amid continued external pressures.
The decision was made at the central bank’s monthly Board of Governors Meeting held on September 22-23.
“[We] decided to keep the BI Rate at 5.75 percent,” Bank Indonesia Governor Destry Damayanti said at an online news conference on Wednesday.
The central bank also kept its deposit facility rate at 4.75 percent and its lending facility rate at 6.5 percent.
Keeping the Rupiah Stable
Destry said the decision was consistent with Bank Indonesia’s strategy to stabilize the rupiah amid continued external pressures.
The central bank will strengthen policy incentives to attract foreign capital inflows and maintain rupiah stability, while accelerating the development of the domestic money and foreign exchange markets.
LPEM UI noted that the rupiah had depreciated 6.8 percent year to date, despite strengthening in recent months. The currency traded around Rp17,500-Rp17,600 per US dollar in the second week of September 2026.
Bank Indonesia is also seeking to support sustainable economic growth without putting additional pressure on the rupiah.
The decision continues the central bank’s policy of keeping the BI Rate unchanged since May. The rate was also maintained in June, July, and August as part of its policy mix amid heightened global uncertainty and volatility.
Keeping Inflation Within Target
Bank Indonesia aims to keep inflation within its 2.5-3.5 percent target range in 2026 and 2027. Inflation rose to 3.19 percent year on year in August 2026.
Before the decision, the Institute for Economic and Social Research at the Faculty of Economics and Business of the University of Indonesia (LPEM UI) had also recommended keeping the benchmark rate at 5.75 percent.
“We believe that Bank Indonesia should maintain its benchmark interest rate at 5.75 percent,” LPEM UI researchers said in a written statement on Tuesday, September 22.
LPEM UI also cited Indonesia’s trade balance, which returned to a US$121.9 million surplus in July after recording a US$450.5 million deficit in June.
However, the cumulative trade surplus from January to July stood at US$3.70 billion, down 84.4 percent from US$23.77 billion in the same period last year.
Foreign exchange reserves stood at US$146.5 billion in August, up from US$145.3 billion in June.
Global Interest Rates and Rupiah Pressure
External conditions also remain a key consideration for Bank Indonesia.
The US Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75-4.00 percent on September 16, 2026, marking its first rate increase since July 2023. The increase came amid renewed conflict in the Middle East and pushed Brent crude prices above US$100 a barrel.
LPEM UI noted that the rupiah had depreciated 6.8 percent year to date, despite strengthening in recent months. The currency traded around Rp17,500-Rp17,600 per US dollar in the second week of September 2026.
Despite recommending that Bank Indonesia keep its benchmark rate unchanged, LPEM UI said another rate increase could be considered toward the end of the year if external conditions deteriorated.
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