Bank Indonesia Holds at 5.75% as Rupiah Stays Near Record Low

Bank Indonesia held its policy rate at 5.75% on 22 July 2026 and expanded measures intended to attract foreign investment and support the Indonesian rupiah. The decision changes the policy backdrop for people converting US or Australian dollars into IDR while the currency remains close to historic lows against the US dollar.

Bank Indonesia Holds Instead of Raising Again

The central bank kept the BI-Rate at 5.75%, the Deposit Facility rate at 4.75% and the Lending Facility rate at 6.50%. Bank Indonesia said its policy mix was designed to strengthen rupiah stability while keeping inflation within the government's 2.5% plus-or-minus 1 percentage point target range for 2026 and 2027.

The hold surprised much of the market. Reuters reported that 20 of 33 economists it polled had expected another quarter-point increase after two consecutive rate rises aimed at supporting the rupiah.

Instead of raising rates again, Bank Indonesia expanded incentives intended to attract foreign portfolio inflows and reduce the cost of some institutional foreign-exchange hedging transactions. It also announced additional incentives for local-currency transactions with partner countries, which currently include Malaysia, Thailand, China, Japan, South Korea and the United Arab Emirates.

These are financial-market measures rather than new retail transfer products. They may affect the wider demand and liquidity backdrop for IDR, but they do not automatically reduce the exchange-rate margin or fee charged to a traveller, household or small business.

Rupiah Remains Close to 18,000 per US Dollar

Reuters reported that the rupiah strengthened modestly to about 17,875 per US dollar at 08:55 GMT on 22 July, from 17,898 before Bank Indonesia's press conference. That was still close to the 18,000 level and followed a record low of 18,190 per dollar on 8 June.

The small immediate move should not be treated as proof that the policy decision caused a lasting change in the exchange rate. Bank Indonesia said it would continue using offshore non-deliverable forwards, domestic spot transactions and domestic non-deliverable forwards to support rupiah stability.

The central bank also cited renewed global uncertainty, higher oil prices and shifting expectations for US interest rates. Those external factors can still affect USD/IDR even when Indonesian policy is unchanged.

The chart below provides live historical context for the US dollar against the rupiah. It is not a customer transfer quote and may have moved since the rates observed on 22 July.

What It Means for IDR Transfers and Supplier Payments

People sending US dollars to Indonesia can currently receive more rupiah per dollar than they would have before the currency's recent decline. However, the mid-market USD/IDR rate is only a reference point. The recipient's actual payout also depends on the provider's exchange-rate margin, transfer fee, delivery method and any receiving-bank charge.

Businesses paying Indonesian suppliers should confirm which currency appears on the invoice. An IDR invoice creates direct exposure to the rupiah, while a supplier pricing in USD may leave the buyer exposed mainly to the dollar even when the payment ultimately reaches Indonesia.

For a large or recurring payment, compare the total IDR delivered rather than focusing only on an advertised fee. BER's USD to IDR rate page provides the live market context, while the money-transfer comparison can help users compare available quotes and costs.

What Australian Travellers Should Check

The Bank Indonesia decision was reported mainly through USD/IDR, but Australians travelling to Bali or elsewhere in Indonesia face the AUD/IDR cross-rate. That pair can move differently because changes in the Australian dollar matter as well as changes in the rupiah.

A weaker rupiah against the US dollar does not guarantee that every Australian traveller will receive better value. Before buying cash or loading a travel card, compare the live AUD to IDR rate with the customer rate offered. Check any upfront fee, exchange-rate margin, overseas ATM charge and card conversion rate.

When a card terminal or ATM offers to convert an Indonesian purchase into Australian dollars, compare that offered conversion carefully. Paying in IDR normally leaves the currency conversion with the traveller's card issuer or network, while accepting dynamic currency conversion uses the rate offered at the terminal or ATM.

BER's Indonesia currency guide contains broader information on spending and accessing money in the country.

What to Watch Next

• Whether Bank Indonesia changes the 5.75% policy rate at a later meeting or relies mainly on intervention and market incentives.
• Whether USD/IDR moves away from the area around 18,000 or remains sensitive to oil prices, global risk sentiment and US interest-rate expectations.
• Whether providers pass any change in market liquidity through to customer IDR quotes; the announced incentives do not guarantee this.

Methodology and Sources

This article was substantively updated on 23 July 2026. Policy settings and measures were checked against Bank Indonesia, while the market reaction and economist poll were attributed to Reuters reporting. Exchange rates and transfer costs can change after publication.

• Bank Indonesia — BI-Rate Held at 5.75%: Strengthening Stability, Supporting Economic Growth
• The Business Times and Reuters — Bank Indonesia Keeps Rates Unchanged, Offers Incentives to Attract Inflows

This article is general information, not personal financial advice.

Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.