Bank Indonesia

Indonesian stocks fall 5% after last week’s dramatic shake-up, US$80 billion rout

Foreigners have sold around US$736 million worth of shares since Wednesday

While the currency has since managed to recoup some of its recent losses, it’s not out of the woods.

Why Indonesia’s rupiah hit a record low in January

Analysts widely expect the currency to weaken further in 2026

Bank Indonesia’s board of governors plays a central role in shaping monetary policy, including decisions on benchmark interest rates and foreign exchange intervention.

Prabowo and Indonesia’s central bank independence: What markets are watching

Analysts say the perception of political influence over monetary authorities in emerging markets can unsettle investors

The rupiah has dropped more than 1% this month, making it the worst performer in Asia after the South Korean won.

Rupiah may sink past record low as fiscal woes erode BI support

The central bank is expected to keep its policy rate unchanged when it meets on Wednesday to anchor the currency

Perry Warjiyo, the governor of Indonesia's central bank, was added to the list of signatories in an online statement of support.

Bank Indonesia joins global central banks in backing Fed’s Powell

It is the first monetary authority in South-east Asia to publicly throw its support behind Fed chairman Jerome Powell

Bank Indonesia held its policy rate unchanged in December to maintain rupiah stability amid persistent outflows.

Foreign investors return to Indonesian sovereign debt

A weaker US dollar in December and benign debt supply have attracted overseas investors back to government bonds

Analysts note that Bank Indonesia’s immediate priority remains defending the Indonesian currency, even as it signals that it is open to gradual rate cuts under the right conditions.
OUTLOOK 2026

Rupiah risks to shape Bank Indonesia’s cautious easing path in 2026

The challenge of balancing economic growth with currency stability has become increasingly pronounced for the central bank

Bank Indonesia has said that weak lending last year reflected demand-side constraints rather than banks’ capacity to lend.

Indonesia to divert 75 trillion rupiah from state-bank placements

The funds are typically kept for the government’s liquidity needs, including urgent spending and budget deficit financing

The shift comes at a timely moment, as Bank Indonesia pushes for lenders to pass through aggressive interest-rate cuts to households and businesses to support growth.

Indonesia set to revamp benchmark rates for money market

Others in South-east Asia have also introduced alternative market reference rates