BI specifically mentioned that rupiah stabilization is a key focus now and just issued Bank Indonesia Rupiah Securities (SRBI) on 15 Sep. Strong appetite from market participants for SRBI is a good thing that potentially drives rupiah appreciation with additional capital inflows into Indonesia's financial system.

Presently, with more uncertainty and volatility in the global economic conditions and the financial markets, we therefore shift our expectation for BI to start delivering its first rate cut only at the beginning of the second half next year.