Bank Indonesia kept its benchmark BI-Rate at 5.75 percent at its Board of Governors meeting on 20 to 21 October 2026. The central bank said consumer price inflation rose to 3.28 percent year-on-year in September, up from 3.19 percent in August.
External pressures weigh on the decision
The central bank said it held the rate amid external pressures and global economic dynamics. Challenges cited include global price volatility, exchange rate pressure and weather disruptions affecting food production and distribution.
Bank Indonesia’s inflation target for 2026 and 2027 is 2.5 percent, with a tolerance band of plus or minus 1 percent.
Coordination with the government on food prices
Governor Destry Damayanti said the bank is strengthening coordination with the government through the TPIP and TPID teams. The teams are implementing the GPIPS programme to control food inflation.
The bank’s strategy focuses on price affordability, supply availability, smooth distribution and effective communication.
Related: Bank Indonesia holds BI-Rate at 5.75%, raises Deposit rate · Bank of Russia holds key rate at 14% as inflation stays elevated
Source: Bank Indonesia
