BI rate
The BI-Rate is Bank Indonesia's benchmark policy interest rate, decided by its Board of Governors to signal the stance of monetary policy. It is based on Bank Indonesia's 7-day reverse repo operation, and the rate was renamed from BI7DRR on 21 December 2023 without changing what it measures.
BI-Rate (suku bunga acuan)
Why it matters
The BI-Rate anchors the rates banks pay and charge. Bank Indonesia says it feeds into money-market rates and banking rates, and it uses the rate to steer inflation toward its 2.5% target,. Higher rates raise the return on rupiah assets against overseas alternatives, which can draw in foreign portfolio money; Bank Indonesia linked its June 2026 hike to stabilising the rupiah. Higher policy rates generally lift loan costs, slow borrowing and weigh on the valuations of rate-sensitive companies, while cuts work the other way.
Examples on the IDX
On 19-20 August 2025 Bank Indonesia cut the BI-Rate by 25 basis points to 5.00%, saying inflation was expected to stay low within its target. The direction reversed in 2026: on 19-20 May the rate rose 50 basis points to 5.25%, and at a weekly board meeting on 9 June it rose 25 basis points to 5.50% to steady the rupiah. On 17-18 June it went to 5.75%, and on 22-23 September 2026 it was held at 5.75%, citing strong external pressure.
Scenarios that use this term
BI Rate Cut 25bps · BI Rate Hike (Rupiah Defense) · Rupiah Crisis Mode
Sources
- BI-Rate, Bank Indonesia, date not shown; accessed 2026-10-11.
- BI-Rate Turun 25 bps Menjadi 5,00%: Mempertahankan Stabilitas, Mendorong Pertumbuhan Ekonomi, Bank Indonesia, date not shown; accessed 2026-10-11.
- BI-Rate Naik 50 bps menjadi 5,25%: Memperkuat Stabilitas, Mendorong Pertumbuhan Ekonomi, Bank Indonesia, date not shown; accessed 2026-10-11.
- BI-Rate Naik 25 bps menjadi 5,50%: Kebijakan Lanjutan Memperkuat Stabilitas Nilai Tukar Rupiah, Bank Indonesia, date not shown; accessed 2026-10-11.
- BI-Rate Naik 25 bps Menjadi 5,75%: Memperkuat Stabilitas, Mendorong Pertumbuhan Ekonomi, Bank Indonesia, date not shown; accessed 2026-10-11.
- BI-Rate Tetap 5,75%: Memperkuat Stabilitas, Mendorong Pertumbuhan Ekonomi, Bank Indonesia, date not shown; accessed 2026-10-11.