Overview
- Bank Indonesia kept its benchmark rate at 4.75% and said it will support the currency through interventions in domestic and offshore markets.
- The rupiah touched a record intraday low of 16,985 per US dollar before partially recovering after official reassurances.
- Finance Minister Purbaya Yudhi Sadewa pledged to preserve the central bank’s independence and said he would not push it to finance government programs.
- Ten-year government bond yields rose to about 6.33% as investors weighed governance concerns and recent outflows, including roughly US$6.4 billion of net foreign bond sales in 2025.
- The wider 2025 budget deficit of about 2.92% of GDP heightened fiscal questions, even as officials pointed to roughly US$156.5 billion in FX reserves as a buffer for currency defense.