19.02.202608:11:01UTC+00Rupiah Stabilizes as BI Keeps Policy Rate on Hold

The Indonesian rupiah traded near IDR 16,900 per dollar on Thursday afternoon, after briefly touching an intraday low of IDR 16,955. The move came after Bank Indonesia left its benchmark interest rate unchanged at 4.75% for a fifth consecutive meeting, in line with market expectations. Governor Perry Warjiyo stressed that the central bank remains focused on stabilizing the rupiah and strengthening monetary policy transmission. Policymakers also highlighted that January’s solid foreign exchange reserves continue to support efforts to anchor the currency.

On growth, the board kept its 2026 GDP forecast at 4.9%–5.7%, above the 4.7%–5.5% range projected for 2025, although output is still expected to remain below potential. Despite having delivered a cumulative 150 bp in rate cuts since September 2024, Warjiyo reiterated that there is scope for further easing, supported by a benign inflation outlook for 2026–2027. Externally, the dollar index held firm around 97.7, as robust U.S. economic data and hawkish Federal Reserve minutes underpinned the greenback.