Indonesian Rupiah: Supported after jumbo BI hike – MUFG

Source Fxstreet

MUFG’s Michael Wan highlights that Bank Indonesia (BI) surprised markets by raising the BI-Rate 50 basis points to 5.25%, the first hike since April 2024 and first 50bp move since November 2022. Governor Warjiyo framed the move as defending Indonesian Rupiah (IDR) stability and expects the Rupiah to strengthen as domestic FX demand eases from July, with USD/IDR already slipping.

Bank Indonesia shocks with 50bp hike

"Indonesia was the standout story in Asia on Wednesday, with two major policy developments landing simultaneously. Bank Indonesia raised the BI-Rate by 50 basis points to 5.25% — the first hike since April 2024 and the first 50bp move since November 2022 — surprising the vast majority of market participants, with only one of 41 surveyed economists having forecast a move of that size."

"Governor Warjiyo framed the decision as a measure to reinforce rupiah stabilisation against heightened global volatility, and stated that the central bank expects the rupiah to strengthen with domestic FX demand likely to ease from July."

"USD/IDR slipped as much as 0.5% to 17,610 on Wednesday — its biggest single-day gain since early April — while the 10-year Indonesian government bond yield rose 4 basis points to 6.81%."

"Separately, President Prabowo announced in a parliamentary address that Indonesia will centralise exports of palm oil, thermal coal, and ferroalloys through a single state-owned enterprise — reportedly to be named PT Danantara Sumberdaya Indonesia — supervised by Danantara and set to begin operations as early as June 2026."

"The policy triggered sharp equity losses: the Jakarta Composite fell 3.5% on Tuesday when rumours first circulated, extending its year-to-date decline to over 26%. The near-term concern for capital flows is that while centralised commodity export receipts could in theory improve FX repatriation over time, the policy has raised immediate questions around governance and investor predictability."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
MicroStrategy Shares are Performing Better than Bitcoin In 2026, But How?MicroStrategy stock is up nearly 3% at press time, trading above $137 as markets opened on March 9. Strategy just announced another 17,994 BTC purchase for $1.28 billion.The stock trades 57% lower ove
Author  Beincrypto
Mar 10, Tue
MicroStrategy stock is up nearly 3% at press time, trading above $137 as markets opened on March 9. Strategy just announced another 17,994 BTC purchase for $1.28 billion.The stock trades 57% lower ove
placeholder
3 US Stocks To Watch In Late March 2026With the US-Iran conflict reshaping global markets, oil surging past $94 a barrel, and tech infrastructure becoming a direct military target, equities across sectors are repricing risk in real time. A
Author  Beincrypto
Mar 13, Fri
With the US-Iran conflict reshaping global markets, oil surging past $94 a barrel, and tech infrastructure becoming a direct military target, equities across sectors are repricing risk in real time. A
placeholder
Goldman Sachs takes lead on SpaceX IPO as prospectus expected WednesdayGoldman Sachs will take the lead left seat for SpaceX’s initial public offering, positioning the firm as the most prominent player in what could become the biggest IPO of all time, according to CNBC Morgan Stanley comes next. BofA, Citi, and JPMorgan complete the rest of the senior positions. This brings the SpaceX IPO out...
Author  Cryptopolitan
Yesterday 02: 27
Goldman Sachs will take the lead left seat for SpaceX’s initial public offering, positioning the firm as the most prominent player in what could become the biggest IPO of all time, according to CNBC Morgan Stanley comes next. BofA, Citi, and JPMorgan complete the rest of the senior positions. This brings the SpaceX IPO out...
placeholder
Nvidia Shares Gain as Chipmaker Tops Estimates on 85% AI Revenue SurgeNvidia delivered another blockbuster quarter, beating Wall Street estimates on revenue, earnings, and data center growth as global demand for AI infrastructure accelerated.The chipmaker’s results rein
Author  Beincrypto
6 hours ago
Nvidia delivered another blockbuster quarter, beating Wall Street estimates on revenue, earnings, and data center growth as global demand for AI infrastructure accelerated.The chipmaker’s results rein
placeholder
Pundit Predicts What Will Happen To XRP When Exchanges Run Out Of SupplyXRP’s supply mechanism is one of the most controversial talking points in the crypto market. XRP exchange reserves have been falling for months, and the on-chain numbers are glaring. Now, a crypto
Author  NewsBTC
6 hours ago
XRP’s supply mechanism is one of the most controversial talking points in the crypto market. XRP exchange reserves have been falling for months, and the on-chain numbers are glaring. Now, a crypto
goTop
quote