Grace Sihombing

Indonesia’s foreign-exchange reserves fell for a fifth straight month in May, underscoring the cost of policymakers’ efforts to steady the rupiah after its slide to a record low.

Indonesia’s central bank took aggressive action to reverse a market selloff and support its currency, hiking interest rates in a surprise decision to halt foreign outflows triggered by policy uncertainty under President Prabowo Subianto. Bank Indonesia raised its benchmark BI-Rate by 25 basis points to 5.5% on Tuesday, more than…

The surprise hike in Indonesia’s interest rates on Tuesday helped the rupiah rebound from a record low, but analysts say it likely won’t restore long-term investor confidence in President Prabowo Subianto’s management of the economy.

Indonesia’s central bank governor signaled it would allow bond yields to rise and left the door open for future interest-rate hikes during a roughly 90-minute call late Tuesday night with investors, seeking their return to Southeast Asia’s largest economy.

Indonesia’s rupiah — Asia’s worst-performing currency this year — has been under pressure since late 2024 when investors began reassessing the country’s fiscal outlook following the election of President Prabowo Subianto. Before this current period of volatility, the currency hadn’t traded at such weak levels since the Asian Financial Crisis of 1997-98.

Two of Asia’s beleaguered central banks are poised to tighten monetary policy further, staying on guard in case inflation and currency risks persist despite a potential deescalation of the Middle East conflict.

Indonesia’s central bank raised its key interest rate for a third time in about a month, extending its aggressive efforts to stabilize the rupiah and shore up investor confidence.

Indonesia's central bank raised its key interest rate for a third time in about a month, extending its aggressive efforts to stabilise the rupiah and shore up investor confidence.

JAKARTA (Bloomberg): Indonesia is planning sweeping tax incentives for a proposed international financial centre, including an effective 0% income tax rate for some businesses and foreign finance experts.

S&P Global Ratings affirmed Indonesia’s investment-grade score and stable outlook, offering reassurance to investors and bucking a trend among peers that have turned more cautious on Southeast Asia’s largest economy.