Institution: Bank Indonesia is expected to maintain interest rates unchanged until the end of 2026.

The economists at Liangchang International stated in a report that the Bank of Indonesia may keep its policy rate at 5.75% until the end of 2026, maintaining patience before considering further adjustments. They also mentioned that the tightening stance of the Federal Reserve has raised the threshold for policy easing, and although the Indonesian rupiah has recovered from recent lows, it is still volatile. Liangchang International added that while the easing of tensions in the Middle East and the decline in energy prices may support Indonesia's inflation outlook and external balance, the 2027 budget will be a key litmus test for fiscal risks and the stability of the Indonesian rupiah, which may prompt the Bank of Indonesia to remain cautious.