world-economy

Bank Indonesia Raises Rates Half Point to Stem Rupiah Decline

Bank Indonesia surprised markets with a larger-than-expected 50 basis point rate increase, marking its first monetary tightening in two years as the rupiah hit successive record lows this month. The central bank moved aggressively to defend the currency against ongoing depreciation pressures. In tandem with the rate decision, Indonesia's outstanding central bank bills reached their highest level in nearly two years, reflecting enhanced efforts to attract capital inflows and stabilize the exchange rate. Officials pledged "smart interventions" in foreign-exchange markets to support the rupiah's recovery. The dual approach—combining conventional monetary policy with targeted bill issuance—signals authorities' commitment to restoring currency stability.