BANK Indonesia (BI) has made a bold, perhaps a little reckless, decision. On Wednesday, January 15, 2025, contrary to market expectations, the Indonesian central bank lowered its benchmark BI Rate from 6 to 5.75 percent amid global market turbulence and a strengthening United States dollar. 

The rate cut could accelerate capital outflows from Indonesia, further pressuring the already battered rupiah. Over the past three months, as of F