Report published September 23, 2026

Indonesia: BI Holds at 5.75%, Steps Up Liquidity and Hedging Support – Goldman Sachs

Goldman Sachs · September 23, 2026

Bank Indonesia held its benchmark policy rate at 5.75% while adjusting FX hedging discounts and signaling increased emphasis on rupiah liquidity. Goldman Sachs expects BI will need to hike rates by 25bp twice (in Q4 2026 and Q1 2027) amid Fed tightening and regional peer rate hikes.

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Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.Bank Indonesia kept its policy rate unchanged at 5.75% in September, matching expectations.
2.BI shifted focus toward liquidity management by adding 'maintaining adequate rupiah liquidity' to its mandate and lowered the 1-week repo rate by 25bp over the past month.
3.BI increased FX hedging discounts across tenors and DNDF hedging discounts to incentivize foreign capital inflows.

Key numbers
Main points

Report data

Key figures extracted from this report

Metric	Estimate	Context
BI Policy Rate	5.75%	Bank Indonesia kept the policy rate unchanged at 5.75% in September.
1-Week Repo Rate	-25 bp	BI lowered the 1-week repo rate to reduce the cost of obtaining short-term rupiah liquidity.
3-Month FX Hedging Discount	15%	Raised from 12.5% to 15% to attract foreign capital inflows.
6-Month FX Hedging Discount	20%	Raised from 12.5% to 20% across tenors for portfolio flows, bank loans, and FDI.
12-Month FX Hedging Discount	25%	Raised from 12.5% to 25% across tenors.