April 23, 2025 | 06:48 pm
TEMPO.CO, Jakarta - The rupiah closed weaker by 12 points in the afternoon trade on Wednesday, April 23, 2025, ending at Rp16,871.5 per U.S. dollar. Earlier, the rupiah had also weakened by 25 points to Rp16,858.5 per U.S. dollar.
Currency analyst Ibrahim Assuaibi stated in a written statement that the rupiah is expected to remain volatile in tomorrow’s trading but will likely end lower within the range of Rp16,860-Rp16,940.
In the meantime, Bank Indonesia, through its April 2025 Board of Governors’ Meeting (RDG) held on Tuesday and Wednesday, decided to maintain its benchmark interest rate at 5.75 percent.
The deposit facility rate remained unchanged at 5 percent, while the lending facility rate was kept at 6.5 percent.
The decision to hold rates was largely influenced by global economic uncertainty, primarily due to escalating trade tensions.
“The aggressive tit-for-tat strategy between the United States and China regarding import tariffs is exacerbating global uncertainty,” explained Ibrahim.
Additionally, concerns about domestic inflation also persist. Ibrahim noted that the deflationary pressure, despite the latest data showing inflation remains below Bank Indonesia's target range, is expected to be temporary following the end of the electricity discount subsidy program.
Inflation is also forecast to gradually rise as the discounts on air transport fares for the Idul Fitri holiday period come to an end.
Increased aggregate demand and higher mobility of the public due to various upcoming religious holidays and collective leave periods in the coming months are likely to contribute to inflationary pressures.
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