The heightened external risks that are beyond Bank Indonesia’s grip may make it tough to call its April’s rate hike as one-and-done, according to economists.
Its currency remains vulnerable in the face of an unclear Federal Reserve rate path and elevated geopolitical tensions, coupled with corporate dollar demand for dividends and debt payments. Governor Perry Warjiyo’s rupiah guidance — that it will likely average 16,200 per dollar this quarter — reflects those risks.