BI Rate Hike Aims to Maintain Economic Stability: Minister Airlangga

Bank Indonesia's decision to increase its benchmark interest rate by 25 basis points to 5.50 percent is a strategic move to protect national economic stability against global financial volatility. The central bank acted after observing that the rupiah's depreciation had exceeded initial projections, necessitating decisive policy intervention.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the BI Rate hike prioritizes stability. The policy shift was immediately reflected in market performance, with the rupiah closing stronger against the US dollar and the Indonesia Stock Exchange's Composite Index experiencing a significant surge. Hartarto noted that the market's positive reaction demonstrates investors' confidence in the agility of Indonesia's fiscal and monetary authorities in responding to global shifts.

“

The BI Rate was increased because it prioritizes stability

Despite external pressures weakening the rupiah, Hartarto emphasized that Indonesia's core economic fundamentals remain robust. Strong export performance, solid macroeconomic indicators, and a favorable outlook from international trade partners underpin this resilience. Data from the Central Statistics Agency shows the Indonesian economy grew 5.61 percent year-on-year in the first quarter of 2026. Furthermore, Indonesia holds a secure position in the agricultural sector, exporting approximately 1.5 million tons of urea, solidifying its role in regional supply chain stability.

“

The market sees Indonesia as responsive to the current turmoil and situation