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Indonesia data mix seen supporting BI to keep policy rate steady

DBS says the focus for Bank Indonesia after Perry Warjiyo’s exit is on non-rate measures and ensuring IDR liquidity, while the USDIDR stays rangebound.

Reported · Written up by our desk · Central Banks

DBS Group Research economist Radhika Rao said Indonesia’s near-term policy outlook is likely to remain steady, citing a mixed growth and inflation backdrop, a weaker external balance, and a rangebound USDIDR environment.

Rao noted that onshore markets are centered on the appointment of a new Bank Indonesia governor following Perry Warjiyo’s departure, with Acting Governor Destry Damayanti prioritizing non-rate measures and IDR liquidity.

In that setup, DBS argues the combination of conditions supports keeping the policy rate unchanged in the near term, even as markets look to the next governor for direction.

The report also frames the decision in the context of broader currency and liquidity management, rather than immediate moves in the policy rate, according to FXStreet.

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