Indonesia Central Bank Vows to Reverse Rupiah Losses, Holds Interest Rates

BANK INDONESIA / BI - JAKARTA, Jan 21 - Indonesia's central bank kept policy rates unchanged on Wednesday, saying it would not hesitate to spend the country's foreign exchange reserves to reverse the decline in the rupiah amid concerns about fiscal health and monetary policy autonomy.

The decision came after the rupiah hit a record low of 16,985 in intraday trading on Tuesday, after President Prabowo Subianto nominated his nephew for a senior Bank Indonesia (BI) job raising concerns for central bank independence.

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