Bank Indonesia raised its benchmark BI Rate by 25 basis points to 5.50% in an unscheduled policy move announced Tuesday, describing the decision as a response to a larger-than-expected weakening of the rupiah since its last meeting. The central bank said the rate increase was intended to support exchange-rate stability amid elevated global market volatility and to help encourage foreign capital inflows.

BI Governor Perry Warjiyo said the central bank also outlined additional measures and incentives alongside the rate decision to support rupiah stabilization. Under BI’s published calendar, benchmark rate decisions are normally taken at monthly Board of Governors meetings, with the next scheduled for mid-June 2026.

BI also said the policy step was aimed at keeping inflation within its target range over the 2026–2027 horizon.