Bank Indonesia raised its benchmark BI-Rate by 25 basis points to 5.50% on June 9 in an unexpected off-cycle decision, citing a sharper-than-anticipated weakening in the rupiah since its previous meeting.

The central bank set the deposit facility rate at 4.50% and the lending facility rate at 6.25%.

The rupiah had touched 18,190 per U.S. dollar, described as a record low, and later strengthened slightly to around 18,085 after the decision.

Bank Indonesia also announced steps aimed at supporting the currency and encouraging foreign investment inflows, including higher rates across SRBI tenors of 6, 9, and 12 months and a 10% reduction in the hedging swap rate offered to foreign investors.