BI again raised the BI Rate to 5.75%, after the total increase reached 100 bps in about one month.
This step shows that BI is focused on maintaining rupiah stability and containing the risk of inflation amidst global pressure.
However, Indonesia’s economic conditions are still mixed:
✅ Q1-2026 economy grew 5.61%
✅ Inflation is still under control at 3.08% yoy
⚠️ The Rupiah was under pressure to the IDR 18,000/US$ area
⚠️ JCI is still weakening quite deeply
⚠️ Layoffs from Jan–May 2026 will reach 23,470 workers
⚠️ Non-subsidized fuel increases sharply, potentially reducing logistics costs
In conclusion, the Indonesian economy cannot yet be called sick, but pressure is starting to be felt in several sectors.
What do you think, bro, is this high BI Rate helping the rupiah more or is it actually putting pressure on the economy?
