# Bank Indonesia Raises Rate a 5th Time, Plans Tool to Aid Rupiah

> Bank Indonesia raised its benchmark rate 25 basis points to 5.75% on September 27, its fifth hike since mid-May, hours after the Federal Reserve's third hike this year. It also introduced an instrument to encourage foreign investors to hedge currency onshore to support the rupiah, which has fallen about 9% against the dollar this year.

- Date: 2018-09-27 · published 2018-09-27T12:00:00.000Z
- Category: macro · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/63355-bank-indonesia-raises-rate-a-5th-time-plans-tool-to-aid-rupiah
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Rupiah weakness and tighter Indonesian monetary policy raise the cost of imported feed inputs and pressure local feed margins, while a weaker rupiah can make Indonesian palm oil and other exports cheaper in dollar terms.

## Read by commodity

- USDIDR: bearish ▼
- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2024-04-24 | [Indonesia's central bank delivers surprise rate hike to anchor rupiah](https://feedsoft.ai/events/31049-indonesia-s-central-bank-delivers-surprise-rate-hike-to-anchor-rupiah.md) | -0.5% | -5.4% |
| PALMOIL | 2022-07-11 | [USD/IDR: Indonesian rupiah poised to remain robust in July – Mizuho: Analytics and Market news from 11 July 2022 06:48](https://feedsoft.ai/events/40801-usd-idr-indonesian-rupiah-poised-to-remain-robust-in-july-mizuho-analytics-and.md) | -8.9% | -8.4% |
| PALMOIL | 2023-02-20 | [Surplus Transaksi Berjalan Bikin Rupiah Kuat, Sampai Kapan?](https://feedsoft.ai/events/37663-surplus-transaksi-berjalan-bikin-rupiah-kuat-sampai-kapan.md) | +0.5% | -3.5% |
| PALMOIL | 2022-11-25 | [MYR/USD: Malaysia Ringgit Rises to 3-Month High After New PM Appointment - Bloomberg](https://feedsoft.ai/events/38929-myr-usd-malaysia-ringgit-rises-to-3-month-high-after-new-pm-appointment.md) | +3.4% | -0.7% |
| PALMOIL | 2024-07-31 | [MYR/USD: Malaysia Ringgit Rebound Set to Accelerate on Fed Rate Cuts, Exports - Bloomberg](https://feedsoft.ai/events/29549-myr-usd-malaysia-ringgit-rebound-set-to-accelerate-on-fed-rate-cuts-exports.md) | -1.9% | +1.5% |

## Sources

- jakartaglobe.id: https://jakartaglobe.id/news/bank-indonesia-raises-rate-5th-time-plans-tool-aid-rupiah

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.