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Story perspectives

Bank Indonesia Holds Rates Amid Political Concerns

1/21/2026

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Story summary
  • Bank Indonesia kept the benchmark rate at 4.75% on January 21, 2026, as economists anticipated.
  • BI reassured markets of its autonomy amid concerns about political interference after President Prabowo Subianto's nominations for senior BI roles.
  • BI plans to intensify interventions to support the currency while maintaining a growth forecast of 4.9% to 5.7% for 2026.