FX.co ★ Indonesia Holds Rates Steady to Support Rupiah

Bank Indonesia (BI) left its benchmark interest rate unchanged at 4.75% at its April 2026 policy meeting, marking the seventh consecutive month of holding rates steady. The decision, which was in line with market expectations, was aimed at supporting both the rupiah and domestic economic growth.

The rupiah weakened to Rp17,140 per US dollar on April 21, 2026, down 0.87% from the end of March, as rising tensions in the Middle East prompted capital outflows from emerging markets. Even so, BI expects inflation to remain within its 2026–2027 target band of 2.5% ±1%. The annual inflation rate eased to a three-month low of 3.48% in March 2026, from 4.76% in February, staying within the central bank’s 1.5%–3.5% target range.

Despite persistent global headwinds, BI maintained its 2026 economic growth forecast at 4.9%–5.7%. Indonesia’s GDP grew 5.39% year-on-year in Q4 2025, up from 5.04% in Q3 and the fastest pace since Q3 2022. The central bank also kept its overnight deposit facility rate at 3.75% and its lending facility rate at 5.50%.