Indonesia has raised its Deposit Facility Rate to 4.25% in May 2026, up from 3.75% recorded in April 2026, according to data updated on 20 May 2026. The move marks a further tightening of financial conditions as policymakers continue to adjust benchmark rates.
The 50-basis-point increase in the Deposit Facility Rate signals an effort to make rupiah-denominated deposits more attractive and could influence banks’ funding costs and short-term market rates. The higher rate may also affect savings returns and borrowing conditions across the Indonesian financial system.
With the May 2026 adjustment, Indonesia extends its recent cycle of rate increases, positioning the Deposit Facility Rate at its highest level over the latest reported period. Markets and investors will now watch for indications of how this new rate level shapes liquidity, credit demand, and broader economic activity in the months ahead.
