Indonesian Macro Update - BI Rate Update 22 Jan 2026
KBVS MACRO UPDATE
Thursday, 22 January 2026
BI Rate Held at 4.75% Amid Efforts to Alleviate Negative Sentiment on the Rupiah
Bank Indonesia (BI) reaffirmed its commitment to macroeconomic and financial stability by maintaining the BI Rate at 4.75% at the Board of Governors’ Meeting (RDG-BI) held on 20–21 Jan ‘26. Notably, during the meeting, BI Governor Perry Warjiyo highlighted that the depreciation trend of the Rupiah observed since early Dec ‘25 has not been only driven by a deterioration in domestic economic fundamentals.
BI’s statement that it will act decisively to stabilize the Rupiah is particularly important. Looking ahead, Bank Indonesia is expected to intensify exchange rate stabilization efforts in the near term to prevent a further deterioration in market sentiment.
In addition, easing global geopolitical risks could help improve global risk sentiment. Overall, these dynamics suggest that BI is likely to maintain the BI Rate at 4.75% at the Feb '26 Board of Governors’ Meeting, unless there is a pronounced shift toward a stronger risk-on environment accompanied by a more aggressive pro-growth policy stance from the government.
Regards,
KBVS Research Team