FX.co ★ Rupiah Steady around IDR 16,900

On Thursday, the Indonesian rupiah remained stable at approximately IDR 16,900 against the US dollar. This followed Bank Indonesia's decision to maintain its key interest rate at 4.75% for the fourth consecutive meeting on Wednesday, aligning with market expectations. Governor Perry Warjiyo assured that the central bank is prepared to intervene decisively to stabilize the currency, emphasizing that foreign reserves reached a nine-month high in December 2025. He affirmed the bank's commitment to ensuring rupiah stability and guiding it towards a gradual strengthening, backed by robust economic fundamentals. Despite this, Warjiyo indicated the potential for further rate cuts, with inflation expected to remain within the 1.5%–3.5% target range over the coming two years. Bank Indonesia has previously reduced rates by a total of 150 basis points from September 2024 to September 2025. The governor reaffirmed that the economy is operating below its full potential, maintaining a growth forecast of 4.9%–5.7% for 2026 compared to 4.7%–5.5% for 2025. Meanwhile, on a global scale, the US dollar index remained steady as trade tensions between the United States and Europe diminished.