Indonesia central bank, finance minister team up to lift asset yields for rupiah support

Bank Indonesia and the finance minister have agreed to raise asset yields to bolster the rupiah. The coordinated move aims to attract capital inflows and stabilize the currency.

/Willy Kurniawan JAKARTA, June 6 : Indonesia's central bank chief and finance minister on Saturday agreed to increase yields on Indonesian assets to attract portfolio inflows and support the rupiah, after the currency hit record lows in the past few weeks.

Bank Indonesia and the finance minister have agreed to raise asset yields to bolster the rupiah.

Bank Indonesia and the finance ministry "will increase the attractiveness of yields" on Indonesian assets "so that portfolio inflows return" to the country, Governor Perry Warjiyo told a press conference at parliament building.

Indonesia's central bank raised its ​policy interest rates by a larger-than-expected 50 basis points at a policy review in May to support the rupiah.

Indonesian rupiah bank notes inside a plastic bag at a traditional market in South Tangerang, on the outskirts of Jakarta, Indonesia, June 5, 2026.

The central bank's bond buying operations typically also aim to try to manage the government's borrowing costs by preventing yields of long-term bonds from rising too much.

One-year Bank Indonesia bonds, called SRBI, were sold at a 7.25 per cent weighted average yield at an auction on Friday, higher than the government's 10-year bond yield of 6.902 per cent.

Markets are also worried about the autonomy of the central bank, transparency issues at the stock market and Prabowo's new plan to centralise exports of major commodities.