Indonesia's central bank on Friday decided to maintain benchmark interest rates unchanged at 6.5% as expected.
However, Bank Indonesia ordered lenders to set aside more cash in reserves in order to curb lending. Commercial lenders will be required to keep 8% of their deposit as primary reserves, up from the previous requirement of 5%.
The bank also set a loan-to-deposit ratio of 78-100%.
Consumer price inflation in South East Asia's largest economy jumped 6.4% in August, a 16-month high, and above the bank's 4-6% target range.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.