Bank Indonesia maintains its benchmark rate to support the currency, as the economy notches its first current account surplus in over two years.

The Indonesian rupiah held steady around 16,700 per US dollar on Thursday, following a decision by the nation's central bank to keep borrowing costs unchanged for a second consecutive meeting. The move is part of a broader effort to stabilize the local currency and attract foreign investment amid global economic uncertainty.

The decision to maintain the benchmark seven-day reverse repurchase rate at 4.75% on Wednesday was bolstered by fresh data showing a significant improvement in Indonesia's external balance. The country's current account swung to a surplus in the third quarter of 2025, the first surplus in two and a half years.

Key Economic Highlights:

• Current Account Surplus: The surplus reached 1.1% of GDP, the highest level since the third quarter of 2022, driven by a strong performance in non-oil and gas exports.
• Currency Pressure: Despite the positive data, the rupiah remains down approximately 3.8% against the US dollar for the year.
• Monetary Policy Stance: Bank Indonesia noted there is still room for further easing, having already cut rates by 150 basis points over the past year. However, stability is the current priority.
• Growth Ambitions: The hold on rates comes as President Prabowo Subianto aims to accelerate economic growth to 8% during his term, a significant increase from the pre-pandemic average of around 5%.

Globally, the US dollar index held near a six-month high above the 100 level, as traders await key US jobs data for clues on the Federal Reserve's future policy path, creating persistent headwinds for emerging market currencies like the rupiah.