Bank Indonesia Holds Benchmark Rate at 5.75% to Anchor Rupiah as 2026 Growth Target Set at 4.9%–5.7%

JAKARTA, Investortrust.id — Bank Indonesia (BI) maintained its benchmark interest rate, the BI Rate, at 5.75% at the conclusion of its monthly Board of Governors Meeting (RDG) on Wednesday, Sept. 23, 2026.

Alongside the primary policy rate, the central bank also held the deposit facility rate at 4.75% and the lending facility rate at 6.5%.

"The Bank Indonesia Board of Governors meeting on September 22–23, 2026, decided to maintain the BI Rate at 5.75%, the deposit facility rate at 4.75%, and the lending facility rate at 6.5%," Bank Indonesia Governor Destry Damayanti stated during a press conference in Jakarta on Wednesday.

Stabilizing the Currency Against Volatile Global Headwinds

Destry explained that the stance remains consistent with the monetary authority’s focus on stabilizing the rupiah exchange rate against ongoing external crosscurrents. The policy calibration is tailored to anchor inflation within the target band of 2.5% plus or minus 1% across 2026 and 2027, while fostering sustainable domestic economic expansion.

A primary consideration informing the central bank’s posture is sluggish global economic momentum coupled with heightened volatility across international financial hubs. Intensified geopolitical strife across the Middle East drove crude prices as high as $132 per barrel before pulling back below the $100 threshold on Sept. 22.

Global commodity prices have broadly climbed in tandem with energy volatility. Destry observed that global economic growth is projected to remain subdued around 3% in 2026, accompanied by elevated worldwide inflation tracking near 4%.

Concurrently, central banks across advanced economies are pursuing restrictive stances. The U.S. Federal Reserve recently lifted the federal funds rate into a 3.75%–4.00% band in September 2026, with elevated probabilities of additional tightening ahead. Higher yields on U.S. Treasuries—driven by policy expectations and expansive sovereign borrowing—have dampened global portfolio allocations into emerging markets, keeping the U.S. Dollar Index elevated against major and developing currencies alike.

"This landscape demands strengthened policy responses and tight synergy between fiscal and monetary policy to reinforce external resilience, safeguard macroeconomic stability, and drive domestic growth," Destry said.

Teuku Riefky, an economist at the Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), observed that short-term flexibility for rate reductions has become considerably tighter.

"Given that Bank Indonesia raised its benchmark rate by a cumulative 100 basis points in recent months, our view is that Bank Indonesia made the appropriate move by maintaining the rate at 5.75% during the September Board of Governors Meeting," Riefky noted.

He added that further policy rate hikes could re-emerge as a policy lever toward year-end or early 2027 if external imbalances worsen and imported inflation mounts, emphasizing that close coordination between Bank Indonesia and the Ministry of Finance remains crucial.

Domestic GDP Growth Projected at 4.9%–5.7% for 2026

In its macroeconomic assessment, Bank Indonesia projected full-year domestic economic growth to land in the range of 4.9% to 5.7% for 2026. Destry stressed that bolstering the national balance of payments is imperative to maintain external buffers amid the unpredictable global climate.

Indonesia’s trade balance posted a surplus of $0.12 billion in July 2026, reversing a trade deficit of $0.45 billion recorded during the preceding month. On the capital account side, foreign portfolio investment recorded a net inflow of $0.4 billion in the third quarter through Sept. 21, 2026, driven by sovereign global bond issuance and non-resident purchases of rupiah government securities (SBN).

Destry affirmed that national growth indicators remain resilient, supported by household consumption, sustained public stimulus disbursements, and improving consumer income expectations. Fixed capital formation has also expanded steadily, anchored by central government investment projects, though private capital expenditure requires further acceleration.

On the trade front, non-oil and gas export volumes expanded as demand recovered from select overseas partner destinations, despite ongoing policy efforts to capitalize on elevated commodity price realignments.

Bank Indonesia confirmed it will continue to execute a balanced policy mix—combining monetary instruments, macroprudential measures, and digital payment infrastructure initiatives—in close alignment with the government's economic agenda to preserve monetary resilience and sustain domestic economic progress.