Bank Indonesia holds BI-Rate at 5.75%, raises Deposit rate

Bank Indonesia kept its BI-Rate at 5.75 percent after its monthly Board of Governors meeting on 20-21 October 2026. The central bank left the Lending Facility rate at 6.50 percent. It raised the Deposit Facility rate to 5.00 percent.

Incentives aimed at the rupiah

Governor Destry Damayanti said the decision is reinforced by increased incentive policy for the Domestic Non-Deliverable Forward (DNDF) hedging instrument. The aim, she said, is to attract foreign capital inflows and maintain rupiah exchange rate stability. She also said it would accelerate deepening of the money market and foreign exchange market.

The central bank framed its policy around rupiah stability and inflation control. It did so amid high uncertainty in global financial markets.

Reserve cuts and credit push

Bank Indonesia also plans gradual cuts to reserve requirements, known as GWM. The cuts are meant to add liquidity to banks. The central bank is also preparing liquidity incentives to steer credit toward productive sectors.

Alongside these steps, Bank Indonesia is promoting digital payments through QRIS. It projects Indonesia’s economic growth for 2026 at between 4.9 and 5.7 percent.

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Related: Bank Indonesia holds BI Rate at 5.75%, raises deposit rate to 5% · Bank of Russia holds key rate at 14% as inflation stays elevated

Source: Bank Indonesia