Economists see BI Rate to hold at 4.75% after rupiah hits record low

JAKARTA - Bank Indonesia (BI) is expected to keep its benchmark interest rate, the BI Rate, unchanged at 4.75% at its April 2026 Board of Governors meeting, with the decision due to be announced on Wednesday (22/4).

According to a Bloomberg survey, all 39 economists polled expect BI to hold rates at that level, extending the current stance for a sixth consecutive month.

BI Governor Perry Warjiyo said earlier this month that the central bank’s focus is on maintaining rupiah stability against the US dollar, alongside calibrating policy in response to the conflict in the Middle East.

In a presentation to the House of Representatives, Perry said policy calibration measures include interventions in the spot and forward markets, maintaining the benchmark rate, adjusting auction allocations, and conducting buybacks of government bonds in the secondary market.

“We need to recalibrate the various policies we have implemented,” Perry told lawmakers.

At BI’s March 2026 meeting, he indicated that the central bank had effectively ruled out changes to the benchmark rate, despite the rupiah weakening past IDR 17,000 per USD.

“We will maintain the current BI Rate to strengthen intervention efforts and ensure adequate foreign exchange reserves, while adjusting in line with future developments,” Perry said at the previous meeting.

Meanwhile, Radhika Rao, an economist at DBS Bank, said BI is unlikely to face immediate pressure to tighten policy, according to Bloomberg. However, she noted the central bank would prioritise financial market stability in the near term.

In Tuesday’s (21/4) trading, the rupiah strengthened 0.15% to IDR 17,143 per USD. Previously, the currency had touched an all-time low of IDR 17,189 per USD on Friday (17/4). (KR/ZH)