21.01.202608:27:36UTC+00Rupiah Firms Slightly After Bank Indonesia Holds Rates

On Wednesday afternoon, the Indonesian rupiah hovered around IDR 16,930 per US dollar, rebounding from an earlier drop beyond IDR 16,970. This movement followed the decision by Bank Indonesia to maintain its benchmark interest rate at 4.75% for the fourth consecutive meeting, aligning with market expectations. Governor Perry Warjiyo stated that this decision aims to support the stability of the rupiah while enhancing the transmission of monetary policy. The central bank had previously reduced rates by a total of 150 basis points from September 2024 to September 2025 to stimulate economic growth. Recent figures indicate that this easing cycle is having an impact, as loan growth reached a ten-month peak of 9.69% in December, despite a continued high level of undisbursed credit facilities, suggesting a cautious lending environment. Bank Indonesia anticipates the rupiah will stabilize but noted that there is still room for further rate cuts, bolstered by a benign inflation outlook for 2026 and 2027. On the global stage, the US dollar index was around 98.5, with investors focused on President Trump's upcoming speech at the World Economic Forum in Davos.