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2025-09-18 16:18:17
Bank Indonesia May Prioritize Exchange Rate Stability Before Considering Easing Regulations. 1. Analysts at Commerzbank Research stated in a report that Bank Indonesia will prioritize the stability of the US dollar against the Indonesian Rupiah before further easing interest rates. 2. The Indonesian Rupiah is the second-worst performing Asian currency this year, but supported by factors such as central bank intervention, the USD/IDR exchange rate has remained within the 16,000 to 16,500 range. 3. Bank Indonesia Governor Perry Warjiyo has expressed support for the updated "burden-sharing" arrangement, in which the central bank helps finance government housing and cooperative projects. 4. Analysts warn that over-reliance on this program could undermine market confidence in the government's fiscal discipline, triggering capital outflows, further weighing on the rupiah and reducing the central bank's room for future easing. 5. Data showed that the US dollar rose 0.5% against the Indonesian Rupiah to 16,500.
