FX.co ★ Rupiah Steady as BI Maintains Stability Focus

The Indonesian rupiah hovered around IDR 16,900 per dollar on Thursday, little changed from the previous session, as traders looked ahead to key data releases next week, including March inflation and February trade figures.

Headline inflation accelerated to 4.76% in February, a near three-year high and above Bank Indonesia’s target range, while January imports jumped ahead of Ramadan and Eid al-Fitr, putting pressure on the trade balance.

Currency stability remains a policy priority. Bank Indonesia has reaffirmed its readiness to intervene in the market and has tightened regulations to manage capital flows and curb volatility. Starting April 1, foreign-exchange purchases above USD 50,000 will require supporting documentation, while the ceiling on domestic NDF (non-deliverable forward) sales will be doubled to USD 10 million to discourage speculative activity.

These measures follow last week’s decision to keep the policy rate unchanged at 4.75% for a sixth consecutive meeting, after a cumulative 150 bps of cuts since September 2024. The government in Jakarta has also reiterated its commitment to keeping the fiscal deficit within 3% of GDP.

On the global front, the US dollar index held firm around 99.6, supported by safe-haven demand amid ongoing uncertainty surrounding efforts to end the war involving Iran.