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Bank Indonesia maintains BI Rate at 5.75% amid global rate hikes
Bank Indonesia (BI) has decided to maintain its benchmark interest rate, the BI Rate, at 5.75%. Governor Destry Damayanti explained that the decision follows a thorough assessment of domestic inflation and economic growth. While the US Federal Reserve recently raised its rates by 25 basis points, BI has opted to hold steady because domestic inflation remains stable, with core inflation around 2% and general inflation at 3.19%.
Damayanti noted that the Indonesian economy is currently operating below its potential level, meaning there is room for growth without triggering excessive inflation. She warned that a 25-basis-point increase in the BI Rate could potentially reduce economic growth by 0.1 percentage point. To support the economy and attract foreign capital without raising rates, BI is exploring incentives to reduce hedging costs, which has already attracted US$6 billion in foreign capital.
Additionally, BI is working to expand liquidity by reducing the outstanding and yield of Sekuritas Rupiah Bank Indonesia (SRBI). The 12-month SRBI yield has decreased to 6.76% from a peak of 7.74%. Meanwhile, in the legislative sphere, members of Commission XI of the DPR RI have encouraged BI to utilize QRIS transaction history as a basis for banking analysis to improve credit access for MSMEs.
Entities
Astra Credit Companies · Bank Indonesia · DPR RI · Destry Damayanti · Federal Reserve · Indonesia
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Incentives to reduce hedging costs have brought US$6 billion in foreign capital into Indonesia's domestic financial markets over the last month. en.tempo.co
- [○ 1 SOURCE] The 12-month yield for Sekuritas Rupiah Bank Indonesia (SRBI) is currently at 6.76%. economy.okezone.com
- [● 2 SOURCES] Bank Indonesia has maintained the BI Rate at 5.75%. en.tempo.co
- [○ 1 SOURCE] The US Federal Reserve is projected to raise interest rates once more in the fourth quarter of 2026.
- [○ 1 SOURCE] Indonesia's core inflation remains stable at approximately 2%. www.liputan6.com
- [○ 1 SOURCE] A 25-basis-point increase in the BI Rate is estimated to reduce economic growth by 0.1 percentage point. en.tempo.co