JAKARTA (Yosefardi) – Bank Indonesia has on Thursday (September 12) decided to raise BI Rate to 7.25% from previous 7% as an effort to help the rupiah which has substantially dropped against the US Dollar.

Earlier BI also decided to increase interest of lending facility by 25 bps to 7% and raised interest of deposit facility by 50 bps to 5.25%.

BI will also cut month-holding-period of BI Certificate (SBI) to one month from current six months.

After dropped substantially by 2.3% on Wednesday (Sept 11), the rupiah today gained 1.05% to Rp11,465 against the US Dollar.