FX.co ★ Rupiah Holds Ground on BI Rate Hold

The Indonesian rupiah remained relatively stable at approximately 16,700 per dollar on Thursday afternoon, following a decision by the central bank to maintain the current borrowing rates for the second consecutive meeting, citing stable inflation conditions. This decision underscores efforts to stabilize the rupiah and entice foreign portfolio investments amidst increasing global uncertainties. Recent statistics revealed that Indonesia's current account recorded a surplus in the third quarter of 2025, marking its first surplus in two and a half years and reaching the highest level since the third quarter of 2022, driven by a significant non-oil trade surplus. This surplus represents around 1.1% of the nation's GDP. Despite this, the rupiah has depreciated by approximately 3.8% against the dollar since the beginning of the year, with the central bank indicating potential for further monetary easing following a 150 basis points reduction over the past year. President Prabowo Subianto has expressed an ambition to boost economic growth to 8% during his tenure, compared to around 5% observed pre-pandemic. On the global stage, the US dollar index remains above 100, positioned near a six-month peak, as the market evaluates the Federal Reserve's policy trajectory in anticipation of critical employment data.