Bank Indonesia (BI) left the BI-Rate unchanged at 4.75% together with the 3.75% Deposit Facility and 5.50% Lending Facility, saying the stance reinforces pro-market monetary operations and intensified FX intervention to shield the rupiah from the deteriorating global backdrop stemming from the Middle-East conflict and to keep 2026-27 inflation within the 2.5 ± 1% target range. After a cumulative 150 bp of easing between September 2024 and September 2025, the central bank continues to steer liquidity by growing base money above 10% and using spot, DNDF and offshore NDF interventions, while maintaining attractive domestic yields through its instrument corridor and secondary-market SBN purchases. Consumer price inflation slowed to 3.48% y/y in March from 4.76% in February, and BI still sees GDP expanding 4.9–5.7% in 2026, supported by bank credit that rose 9.49% y/y in March. Foreign reserves stood at USD148.2 bn (about six months of imports) at end-March; the rupiah traded at Rp17,140 per USD on 21 April, 0.87% weaker month-to-date, while the current-account deficit is projected in a narrow –1.3% to –0.5% of GDP range for 2026. Globally, BI cited a cut in the 2026 world growth forecast to 3.0%, higher oil prices and global inflation of 4.2%, delayed Fed easing and rising UST yields that have spurred flight-to-safety flows and a stronger DXY. BI reiterated it “is prepared to strengthen monetary policy further” if needed to stabilise the rupiah and secure its inflation manda

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