Bank Indonesia Delivers First Off-Cycle Hike in Eight Years, Lifting BI-Rate 25bps to 5.50% to Halt Rupiah Rout
Bank Indonesia raised its benchmark BI-Rate by 25 basis points to 5.50% on June 9, deploying its first off-cycle rate increase in eight years to arrest a slide in the rupiah that had driven the currency to successive rec.
At a glance
- Bank Indonesia raised the BI-Rate 25 basis points to 5.50% at an off-cycle Board of Governors meeting on June 9, 2026
- The overnight deposit facility rate was raised to 4.50% and the lending facility rate to 6.25%
- Bloomberg reported the off-cycle increase was the first in eight years
- BI raised SRBI interest rates across 6-, 9- and 12-month tenors, reopened repo auctions, and cut hedging swap costs for foreign investors
- The rupiah had hit successive record lows amid foreign outflows linked to policy uncertainty under President Prabowo Subianto
VERDICT — CONFIRMED
Bank Indonesia raised its benchmark BI-Rate by 25 basis points to 5.50% on June 9, deploying its first off-cycle rate increase in eight years to arrest a slide in the rupiah that had driven the currency to successive record lows. The hike was decided at an additional weekly Board of Governors meeting outside the regular monthly cycle, which last convened May 19-20, and lifted the overnight deposit facility rate to 4.50% and the lending facility rate to 6.25%.
The central bank framed the action as a follow-up measure to strengthen rupiah exchange-rate stability amid global turmoil tied to the Middle East conflict and sustained foreign portfolio outflows. Alongside the rate move, Bank Indonesia raised the interest-rate structure on its rupiah securities (SRBI) across 6-, 9- and 12-month tenors to attract foreign inflows, reopened repo auctions across multiple timeframes, and reduced hedging swap costs for foreign investors.
Bloomberg reported the surprise decision was aimed at tempering a market rout in which bond yields soared and equities plunged as investors reacted to policy uncertainty under President Prabowo Subianto, while Reuters described a shock rate hike intended to reverse the market sell-off and halt foreign outflows.
Why it matters
an emergency inter-meeting hike by Southeast Asia's largest economy signals that emerging-market central banks have shifted from easing to outright currency defense as the Middle East energy shock and dollar strength squeeze regional markets.
Key facts on file
- Bank Indonesia raised the BI-Rate 25 basis points to 5.50% at an off-cycle Board of Governors meeting on June 9, 2026
- The overnight deposit facility rate was raised to 4.50% and the lending facility rate to 6.25%
- Bloomberg reported the off-cycle increase was the first in eight years
- BI raised SRBI interest rates across 6-, 9- and 12-month tenors, reopened repo auctions, and cut hedging swap costs for foreign investors
- The rupiah had hit successive record lows amid foreign outflows linked to policy uncertainty under President Prabowo Subianto
- The regular monthly Board of Governors meeting had last been held May 19-20, 2026
