Rupiah Steady as BI Holds Rates, Signals FX Support

2026-04-22 08:10 By Farida Husna 1 min. read

The Indonesian rupiah was little changed, hovering around IDR 17,170 on Wednesday afternoon after the central bank left its benchmark rate at 4.75% for a seventh straight meeting, as expected.

Governor Perry Warjiyo said the decision aims to stabilise the currency, stressing readiness to adjust policy and intervene while keeping inflation within target.

He noted that forex reserves around USD 148 billion in March remain adequate, with BI prepared to step up intervention in spot and forward markets.

Warjiyo noted the rupiah is undervalued relative to fundamentals.

The currency has touched record lows several times this month, rattled by Indonesia’s reliance on imported energy despite recent non-subsidized fuel price hikes.

Persistent capital outflows also weighed, reflecting fiscal concerns and broader risk-off sentiment tied to the Middle East conflict.

Policymakers kept their 2026 growth outlook at 4.9% to 5.7% and expect inflation to stay within the 1-1/2% to 3-1/2% band until 2027.



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Rupiah Steady as BI Holds Rates, Signals FX Support
The Indonesian rupiah was little changed, hovering around IDR 17,170 on Wednesday afternoon after the central bank left its benchmark rate at 4.75% for a seventh straight meeting, as expected. Governor Perry Warjiyo said the decision aims to stabilise the currency, stressing readiness to adjust policy and intervene while keeping inflation within target. He noted that forex reserves around USD 148 billion in March remain adequate, with BI prepared to step up intervention in spot and forward markets. Warjiyo noted the rupiah is undervalued relative to fundamentals. The currency has touched record lows several times this month, rattled by Indonesia’s reliance on imported energy despite recent non-subsidized fuel price hikes. Persistent capital outflows also weighed, reflecting fiscal concerns and broader risk-off sentiment tied to the Middle East conflict. Policymakers kept their 2026 growth outlook at 4.9% to 5.7% and expect inflation to stay within the 1-1/2% to 3-1/2% band until 2027.
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Rupiah Remains Weak Ahead of Policy Decision
The Indonesian rupiah hovered near IDR 17,170 on Wednesday, holding above the key 17,000 level after briefly hitting a record low around 17,200 last week. Sentiment remained fragile as the U.S. dollar firmed, with haven demand rising after plans for a second round of U.S.–Iran peace talks collapsed. Bank Indonesia is set to announce its policy decision later today, with markets expecting a seventh straight rate hold at 4.75%, as policymakers signal limited room for further easing after delivering 150bps of cuts since September 2024. Indonesia remains exposed to higher energy costs as a net oil and gas importer despite recent hikes in non-subsidized fuel prices. Inflation risks have intensified, while capital outflows persisted amid the dividend season. Meantime, forex reserves fell to a two-year low in March as the central bank stepped up intervention. Fiscal pressures also grew under President Prabowo’s key programs, though officials have pledged to keep the 3% deficit cap this year.
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Rupiah Stays Above Key Level as BI Meeting Begins
The Indonesian rupiah traded around IDR 17,140 on Tuesday, holding above the psychological 17,000 mark since last week. Pressure persisted as the central bank kicked off its two-day policy meeting, with rates expected to remain unchanged for a seventh straight time at 4.75% following a cumulative 150bps of cuts since September 2024. Inflation risks, however, continue to build amid Middle East tensions. As a net oil and gas importer, Indonesia remains vulnerable to higher energy costs, prompting increases in non-subsidized fuel prices. Seasonal dividend repatriation continued to drive capital outflows, while sustained intervention risks further strained forex reserves, which dropped to a near two-year low in March. Fiscal concerns also weighed, although Finance Minister Purbaya Yudhi Sadewa said the debt service ratio remains manageable. Globally, the U.S. dollar index steadied after recent losses as markets assessed prospects for a longer-term peace deal between Washington and Tehran.
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