Bank Indonesia (BI) Raised BI Rate by 25 bps to 5.75%

 Bank Indonesia (BI) Raised BI Rate by 25 bps to 5.75%

BI raised its benchmark BI Rate by 25 bps to 5.75% at its Jun-26 policy meeting, following an earlier off-cycle 25 bps hike on 9 Jun-26, bringing total rate hikes since May to 100 bps. The move was aimed at supporting the rupiah, containing inflation, and maintaining macroeconomic stability amid global uncertainty. BI also increased the deposit facility rate to 4.75% and the lending facility rate to 6.50%. Despite the tighter policy stance, the central bank maintained its 2026 GDP growth forecast of 4.9%–5.7% and expects inflation to remain within the 2.5% ±1% target range. Meanwhile, the rupiah strengthened to IDR 17,730/USD as of 17 Jun-26, up 0.76% from end-May levels. (Trading Economics)

BCAS: Avoided frontier but, no significant inclusion just as yet

- Indonesia keeps EM status — no reclassification action this cycle.

- BUT: MSCI cut Indonesia's Information Flow rating (+ → −). The flag: shareholding opacity + coordinated trading hurting price formation. Same bucket as Turkey.

- This attacks what index inclusion depends on — trust in true free float and market prices. Hits name-level weights even without a label change.

Conclusion:

→ Not downgraded to Frontier — and unlikely to be, near term.

→ But improved inclusion / re-rating off the table for now. Market must first fix free-float transparency, FX liberalization, operational framework.

→ Meanwhile peers improved (Saudi, Korea, Chile, Colombia). Indonesia moved the wrong way. Gap widening.

- Next checkpoint: 23 Jun-26 Classification Review.

US Lifted Hormuz Blockade as Nuclear Talks With Iran Began

The US lifted its blockade of the Strait of Hormuz following an interim peace agreement with Iran, allowing shipping traffic to resume through one of the world’s most critical energy trade routes. A 60-day negotiation period has begun to finalize details of a memorandum of understanding focused on Iran’s nuclear program. US Vice President JD Vance said talks officially started after the agreement was signed. Markets will closely monitor progress, as any disruption in Hormuz could significantly impact global oil supplies and energy prices. (Bloomberg)

Sumber Alfaria Trijaya (AMRT) Restructured Overseas Operations Through Singapore Unit

AMRT restructured its overseas operations through its Singapore-based subsidiary, Alfamart Retail Asia Pte. Ltd. (ARA), via a three-step transaction completed on 15 Jun-26. Glory Worldwide Investment (GWI) subscribed to newly issued ARA shares worth USD 40.6 mn, reducing AMRT’s ownership in ARA from 100% to 49%. Following the capital injection, ARA acquired an additional 10% stake in its Philippine business for USD 10.5 mn, raising its ownership to 45%, and purchased a controlling 70.0% stake in its Bangladesh operation. The restructuring aims to strengthen funding flexibility for regional expansion, centralize the management of its international businesses under ARA, and allow the group to remain focused on its core Indonesian minimarket operations. (Kontan)

US Lifted Hormuz Blockade as Nuclear Talks With Iran BeganUS Lifted Hormuz Blockade as Nuclear Talks With Iran BeganUS Lifted Hormuz Blockade as Nuclear Talks With Iran Began