TEMPO.CO, Jakarta - Bank Indonesia (BI) has noted that the rupiah is maintaining its upward trajectory against the US dollar, successfully clawing back to a position below the Rp 18,000 threshold following a benchmark interest rate (BI Rate) hike to 5.5 percent.
Bank Indonesia (BI) stated that the rupiah exchange rate against the US dollar continues to strengthen and is currently back below Rp 18,000 per US dollar, following the increase in the benchmark interest rate (BI Rate) to 5.5 percent.
Head of the BI Communication Department, Ramdan Denny Prakoso, stated that foreign investors have reacted favorably to the central bank's reinforced policy mix, specifically the BI Rate increase and the improved yields on Bank Indonesia Rupiah Securities (SRBI) and Government Securities (SBN).
"This is reflected in the increased foreign capital inflows into SRBI instruments following the SRBI auction on June 10, 2026. Foreign capital inflows have also begun to return to the SBN market, particularly in short and medium-term tenors," Ramdan noted in a written statement released in Jakarta on Friday, June 12, as reported by Antara.
Ramdan further explained that BI remains vigilant in monitoring global and domestic financial market fluctuations while ensuring domestic financial instruments remain attractive enough to sustain these capital inflows.
Additionally, BI is committed to optimizing rupiah stabilization through a consistent and measured approach, utilizing Non-Deliverable Forward (NDF) interventions in offshore markets, as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions at home.
During a weekly Board of Governors' Meeting (RDG) on Tuesday, June 9, BI opted to raise the BI Rate by 25 basis points (bps), bringing the benchmark to 5.5 percent.
In a synchronized move, the deposit facility and lending facility rates were also adjusted upward by 25 bps, reaching 4.50 percent and 6.25 percent, respectively.
BI Governor Perry Warjiyo remarked that the rupiah’s recent depreciation had outpaced the its initial projections, prompting the Board of Governors to pull the trigger on a rate hike during Tuesday’s weekly session.
In its press release, BI also unveiled measures to bolster the rupiah, including a restructured interest rate for all SRBI tenors, reduced hedging swap rates to incentivize foreign investors, the reopening of the repo instrument auction window for commercial banks, and intensified monetary operations in both rupiah and foreign exchange.
This follows a more aggressive move in May 2026, when the central bank raised the BI Rate by 50 bps during its Monthly RDG held on May 19-20.
The May 2026 hike represented the first policy shift after maintaining the benchmark steady at 4.75 percent since September 2025. Throughout 2025, Bank Indonesia slashed the benchmark rate five times for a total reduction of 125 bps. BI is slated to convene for its next Monthly Board of Governors' Meeting on June 17-18, 2026.
Read: How Bank Indonesia's Rate Hike Brings Foreign Capital Back
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