Bank Indonesia unexpectedly raised its key interest rates in an off-schedule meeting on June 9, 2026, as mounting external pressures continued to weigh on the rupiah. The central bank increased its benchmark interest rate by 25 basis points to 5.50%, while also lifting the overnight deposit facility rate to 4.50% from 4.25% and the lending facility rate to 6.25% from 6.0%. In addition to the rate hike, the board introduced measures aimed at supporting the currency, including incentives to attract foreign investment. The central bank said the policy package is intended to stabilise the rupiah amid heightened global market volatility linked to tensions in the Middle East and to keep inflation within its target range. Tuesday's decision reflects efforts to safeguard financial stability while maintaining confidence in Indonesia's economy against a backdrop of rising external risks, according to an online statement released by the central bank.