Bank Indonesia raises policy rate to 5.75% as money supply surges double‑digit in May

Bank Indonesia reported that broad money (M2) grew 10.8 % year‑on‑year in May 2026, reaching Rp 10,415.9 trillion. The narrower measure (M1) expanded 15.3 % driven by a 23.9 % rise in giro deposits and a 22.2 % increase in other savings. Credit disbursement to the private sector rose 10.8 % to Rp 8,759 trillion.

In the same month the central bank reopened a repo‑auction window for 3‑, 6‑, 9‑ and 12‑month tenors and bought government securities (SBN) amounting to Rp 156.98 trillion, including Rp 76.62 trillion in the secondary market. These steps were taken alongside three successive policy‑rate hikes in June, taking the benchmark rate to 5.75 % to curb rupiah weakness and keep inflation within the 2.5 % ± 1 % target.

Financial institutions such as BRI Finance said they would adapt funding strategies and uphold asset quality amid the higher‑rate environment, emphasizing disciplined risk management while continuing to support productive credit growth.