Bank Indonesia (BI) has officially raised its benchmark interest rate, the BI-Rate, by 50 basis points to 5.25 percent following its May 2026 Board of Governors Meeting (RDG). In tandem with this adjustment, the central bank has also increased the deposit facility rate to 4.25 percent and the lending facility rate to 6 percent.
In response to this monetary shift, PT Bank Tabungan Negara (Persero) Tbk (BTN) confirmed its readiness to navigate the new economic landscape. Ramon Armando, Corporate Secretary of BTN, stated that the banking industry is well-prepared for such monetary scenarios, emphasizing that the bank is proactively strengthening its risk management frameworks.
Strengthening Banking Resilience Amid Monetary Shifts
“The banking sector is inherently prepared to handle various monetary policy scenarios, including fluctuations in the benchmark interest rate. Each bank maintains robust risk management protocols and conducts periodic stress tests to account for potential increases in the BI-Rate, which can impact the cost of funds,” Ramon explained in Jakarta on Wednesday (May 21).
To mitigate sensitivity to exchange rate volatility and rising costs, BTN is actively refining its funding structure. The bank is prioritizing Current Account Savings Account (CASA), or low-cost funds, as the cornerstone of its corporate funding strategy to maintain operational efficiency.
“BTN remains committed to keeping our funding structure efficient by focusing on the growth of CASA, which serves as the primary pillar of our funding strategy,” Ramon added.
Strategic Objectives of Bank Indonesia
The decision to hike the BI-Rate is part of Bank Indonesia’s broader 2026 monetary policy, which prioritizes stability. Governor Perry Warjiyo noted that this proactive measure is designed to bolster Indonesia’s economic resilience against global headwinds.
While the monetary policy focuses on stability, Bank Indonesia continues to utilize macroprudential measures and payment systems to foster economic expansion. By maintaining a loose macroprudential stance, the central bank aims to stimulate growth through increased credit financing for the real sector, all while upholding the overall stability of the financial system.
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Summary
Bank Indonesia has increased its benchmark interest rate to 5.25 percent to ensure national economic stability amidst global challenges. In response to this policy shift, PT Bank Tabungan Negara (Persero) Tbk (BTN) is reinforcing its risk management frameworks and conducting regular stress tests. The bank remains prepared to navigate potential impacts on the cost of funds while maintaining institutional resilience.
To ensure operational efficiency, BTN is prioritizing the growth of Current Account Savings Account (CASA) deposits as its primary funding strategy. By focusing on these low-cost funds, the bank aims to mitigate sensitivity to rising interest rates. Meanwhile, Bank Indonesia continues to support broader economic expansion through macroprudential measures and increased credit financing for the real sector.
