Bank Indonesia kept its benchmark rate at 5.75% and emphasized currency stability amid a softer dollar and lower US yields.
The Indonesian Rupiah (IDR) received modest support as the US Dollar weakened and long-end US Treasury yields retreated. Bank Indonesia (BI) maintained its policy rate at 5.75%, prioritizing IDR stability over further hikes. The central bank also reiterated measures to attract foreign inflows and deepen FX markets.
BI’s decision underscores policy continuity under acting Governor Destry Damayanti. Instead of raising domestic rates, the central bank is increasingly relying on non-rate tools, such as FX hedging incentives and the Short-Term Bank Indonesia Certificate (SRBI). Elevated oil prices remain a constraint for Indonesia’s external balance.
USD/IDR last traded at 17,830, with bearish momentum intact on the daily chart. Support levels are seen at 17,760 and 16,630, while resistance stands at 17,940.