FX.co ★ Bank Indonesia Holds Lending Facility Rate at 6.50% in August

Bank Indonesia kept its Lending Facility Rate unchanged at 6.50% in August 2026, maintaining the same level as in July 2026. The decision, confirmed by data updated on 19 August 2026, signals continued policy stability in the central bank’s lending operations.

The Lending Facility Rate, which serves as the upper bound of Bank Indonesia’s interest rate corridor and influences short-term market rates, has now remained at 6.50% for at least two consecutive months. Market participants are likely to interpret the hold as a sign that policymakers see current monetary conditions as appropriate to balance inflation control with support for economic activity.

With no change in August, attention will now turn to upcoming data releases and policy meetings for clues on whether Bank Indonesia will adjust borrowing costs later in the year, or extend its cautious, steady-rate stance amid evolving global and domestic economic conditions.