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View all search resultsThe rupiah has again breached a psychological threshold against the United States dollar as fading hope for a swift settlement of the Iran war pushes up global energy prices and inflation in Indonesia, triggering fresh capital outflows from Indonesia.
To safeguard economic sovereignty against foreign currency shocks and exploitative tech monopolies, developing nations must pivot from exporting raw materials to mandating "balanced exports" and reclaiming local control over their digital economies.
In a House or Representatives hearing on Monday, Bank Indonesia (BI) Governor Perry Warjiyo said “we believe” the rupiah will end up averaging around Rp 16,800 per United States dollar, within the Rp 16,500 to Rp 16,900 target range set in the 2026 state budget.
The central bank has decided to keep the BI-Rate unchanged at 4.75 percent to prevent the rupiah from spiraling ever downward amid the nearly two-month war in Iran as the currency hit a record low of Rp 17,193 per greenback on Wednesday, while experts pointed to a narrowing room for monetary policy in its aim to secure financial stability.
Bank Indonesia (BI) has left its benchmark interest rate unchanged as the United States-Israel war on Iran puts pressure on the rupiah, prompting the central bank to respond with forex market intervention and tighter foreign exchange controls.
Finance Minister Purbaya Yudhi Sadewa says pushing the rupiah exchange rate back up to 15,000 per United States dollar should not be that difficult as the currency is undervalued when taking into account Indonesia’s economic fundamentals.
Professionalism will continue in monetary policymaking, Bank Indonesia (BI) Governor Perry Warjiyo has promised, seeking to allay any concerns following Deputy Finance Minister Thomas “Tommy” Djiwandono’s nomination as a deputy BI governor.
Bank Indonesia (BI) has kept its benchmark interest rate unchanged for a second month after recently decreasing it by 25 basis points (bps) in each of three consecutive meetings. The central bank has revised up its gross domestic product projection for the year.
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