It is reported that Bank Indonesia, the central bank of Indonesia, announced to maintain its benchmark interest rate instead of levying intense monetary tightening over the last two months.

Bank Indonesia actually had raised benchmark rate from 4.25% to 5.25% from the middle of May until late June so as to support and protect fragile rupiah rate. Indonesian rupiah actually had been impacted by internal and external issues, including emerging trade intention led by the US but also its internal treasury deficit.

However, some investors had started investing Indonesian government bonds this month owing to hiking interest rate based upon the source. Hence, rupiah rate was relatively stable at this moment.