- The 50 bps increase in the BI Rate to 5.25% signals that Rupiah stability has now become Bank Indonesia’s primary focus.
- The current fiscal and monetary policy mix reflects efforts to balance exchange rate stability with maintaining domestic growth momentum.
- Looking ahead, external pressures and inflation risks could keep Bank Indonesia in a relatively hawkish policy stance. We revise up our end-2026 BI Rate forecast by an additional 50bps from its current level.
