18.02.202605:19:01UTC+00Rupiah Softens as Central Bank Begins Policy Meeting

The Indonesian rupiah weakened to around IDR 16,875 per dollar on Wednesday, after trading mostly flat in the previous two sessions amid thin holiday liquidity. Market sentiment remained cautious as Bank Indonesia began a two-day policy meeting, with a rate decision due on Thursday.

The central bank is widely expected to leave its benchmark interest rate unchanged at 4.75% for a fifth consecutive month, following a cumulative 150-basis-point reduction since September 2024. Still, speculation over additional easing has intensified as policymakers seek to support growth in the aftermath of last year’s disaster in Sumatra.

Indonesia’s economy grew 5.11% in 2025, falling slightly short of the government’s 5.2% target. For 2026, authorities have set a more ambitious growth goal of 5.4%. Finance Minister Purbaya Yudhi has indicated that fiscal policy will remain geared toward underpinning economic expansion.

Investors are also awaiting fourth-quarter current account figures, after Indonesia posted its first surplus in nearly two years in the third quarter. At the same time, the US dollar index was steady ahead of the release of the Federal Reserve’s meeting minutes and the PCE Price Index.