The Board of Governors’ Meeting (RDG) of Bank Indonesia (BI) decided to keep the policy rate unchanged at 4.75%, with the Deposit Facility Rate at 3.75% and the Lending Facility Rate at 5.50%, at its meeting on January 21, 2026. This decision is consistent with the current policy focus on stabilizing the rupiah exchange rate amid heightened global uncertainty, while supporting the achievement of the 2026–2027 inflation targets and fostering economic growth. The decision was also influenced by global financial market sentiment, as the room for further cuts in the Fed Funds Rate (FFR) has narrowed amid elevated U.S. Treasury yields, reflecting concerns over a widening U.S. fiscal deficit and escalating geopolitical tensions following the United States’ stance on Greenland. These developments have contributed to a strengthening of the U.S. dollar index (DXY) against major developed country currencies.