Bank Indonesia (BI) kept its benchmark BI-Rate at 5.75% after its Board of Governors Meeting on October 20–21, 2026. At the same time, it raised the Deposit Facility rate by 25 basis points, from 4.75% to 5.00%, while leaving the Lending Facility rate unchanged at 6.50%.

The decision comes as the rupiah and domestic financial markets face external pressures. BI says its policy mix is aimed at stabilizing the currency and inflation while supporting economic growth.

What changed in BI’s decision?

The BI-Rate, its main policy rate, was unchanged. The adjustment was to the Deposit Facility—a facility through which banks place funds with BI—which rose to 5.00%. BI also strengthened incentives for hedging through Domestic Non-Deliverable Forwards (DNDF) to support rupiah stability and attract capital inflows.

So October’s decision was more than a simple rate hold: BI kept its benchmark rate steady while adjusting other policy instruments. The central bank said it continues to target inflation at 2.5% ± 1% in 2026 and 2027.

The rupiah remains in focus

In its press release, BI said the rupiah stood at Rp17,985 per US dollar on October 20, 2026, weakening 0.61% from the end of September. BI linked the pressure partly to geopolitical tensions in the Middle East, the US monetary-policy outlook, and foreign-investor sentiment in the stock market.

At the October 21 close, the rupiah was reported at Rp18,022 per US dollar, down 0.17% from the previous day, based on Doo Financial Futures data cited by Bisnis.com. This market closing figure has a different date and source basis from BI’s October 20 figure.

What does this mean for households and investors?

A higher Deposit Facility rate does not automatically mean retail deposit rates will rise by the same amount. The Deposit Facility is a bank placement facility at BI; rates offered to customers depend on each bank’s policy and liquidity conditions. The same applies to loan rates, whose changes can vary by product, contract, and timing.

For investors, the decision shows that rupiah stability remains a policy priority. A rate hold—or an increase in one facility—does not guarantee an immediate currency rebound and is not a certain signal for stocks or bonds. Monitor exchange rates, inflation, capital flows, and BI’s next communications. For personal decisions, consider your goals, time horizon, and risk tolerance.

Sources:
Bank Indonesia, “BI-Rate Held at 5.75%: Strengthening Stability, Supporting Economic Growth” (October 21, 2026): https://www.bi.go.id/en/publikasi/ruang-media/news-release/Pages/sp_2823326.aspx
Bisnis.com, “Rupiah Closes Weaker at Rp18,022 After BI Holds Benchmark Rate at 5.75%” (October 21, 2026): https://market.bisnis.com/read/20261021/93/2014517/rupiah-ditutup-melemah-sentuh-rp18022-usai-bi-tahan-suku-bunga-acuan-575