- BI maintained the policy rate at 6%, driven by the recent sharp turn in global market outlook amid Trump's sweeping victory in the US Election.
- Trump’s tariff and deportation policies could lead to higher US inflation and/or stronger Dollar, both equally unappealing outcomes for Indonesia.
- Rupiah has weathered the “Trump trade” quite well, due to BI's continuation of FX intervention and SRBI issuance strategies.
- Given tightening liquidity conditions in Indonesia and global markets, the government may be pushed to find more “creative” financing strategies, such as Danantara SWF or a third round of tax amnesty.
