Bank Indonesia left the BI-Rate at 4.75 %, with the Deposit and Lending Facility rates at 3.75 % and 5.50 %, arguing that rupiah stabilisation in the face of persistent global market volatility is essential to keep inflation on track for the 2026-27 target band of 2.5 ± 1 % while sustaining the recovery. Following 150 bp of cumulative cuts since September 2024—25 bp that month and 125 bp through 2025—the policy rate has now been steady at its post-easing low for five consecutive meetings. The central bank is reinforcing “pro-market” operations, intensifying spot, NDF and DNDF FX interventions, conducting measured secondary-market SBN purchases and flexibly managing SRBI issuance to maintain liquidity and attract foreign portfolio inflows. January CPI quickened to 3.55 % y/y from 2.92 % on a one-off electricity-tariff base effect, but core inflation held at 2.45 %; 2025 growth reached 5.11 % and is projected at 4.9–5.7 % this year, supported by 9.96 % credit growth in January, ample AL/DPK liquidity of 27.54 % and low gross NPLs of 2.05 %. Externally, the December trade surplus capped a 2025 current-account range of –0.5 % to +0.3 % of GDP, mid-February portfolio net inflows totalled USD1.6 bn and reserves stayed high at USD154.6 bn (6.3 months of imports). The rupiah, deemed undervalued, stood at IDR16,880/USD on 18 February, 0.56 % weaker than end-January, with the central bank expecting eventual firming as stabilisation measures take hold. Bank Indonesia highlighted a slowi

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