Jakarta, June 10 -- Bank Indonesia's decision to raise its benchmark interest rate (BI rate) by 25 basis point was considered a strategic move to safeguard national economic stability against global financial volatility.

The central bank increased the BI Rate to 5.50 percent after noting that the rupiah's depreciation had outpaced initial projections, requiring decisive policy intervention to maintain exchange rate stability and anchor inflation.

"The BI Rate was increased because it prioritizes stability," Coordinating Minister for Economic Affairs Airlangga Hartarto told reporters at his office in Jakarta, Tuesday (June 9).

Market indicators immediately reflected investor confidence following the policy shift. The rupiah closed tradi...