09.06.202606:38:49UTC+00Bank Indonesia Delivers Surprise Rate Hike to Support Rupiah

Bank Indonesia unexpectedly raised its key interest rates in an unscheduled meeting on June 9, 2026, as mounting external pressures continued to weigh on the rupiah. The central bank increased its benchmark rate by 25 basis points to 5.50%, while also lifting the overnight deposit facility rate to 4.50% from 4.25% and the lending facility rate to 6.25% from 6.00%. Alongside the rate hike, the board unveiled measures to support the currency, including incentives designed to attract foreign investment. The central bank stated that the policy package aims to stabilise the rupiah amid heightened global market volatility stemming from tensions in the Middle East and to keep inflation within its target range. Tuesday’s decision underscores efforts to safeguard financial stability and sustain confidence in Indonesia’s economy against a backdrop of rising external risks, according to an online statement released by the central bank.