The Indonesian rupiah weakened toward 16,650 per dollar on Thursday, falling for the second consecutive session after the central bank signaled more room for rate cuts amid expectations of low inflation through 2026. Bank Indonesia on Wednesday unexpectedly held steady its benchmark rate at 4.75%, following three straight reductions, with Governor Perry Warjiyo saying efforts are underway to strengthen monetary policy transmission. Since September 2024, policymakers have slashed rates six times, totaling 150 basis points. Meanwhile, the rupiah has fallen about 3% against the dollar this year, among the weakest in emerging Asia. At the same time, President Prabowo Subianto aims to lift economic growth to 8% during his term, compared with around 5% in the post-pandemic years, and targets 5.4% growth in 2026. Elsewhere, the dollar index inched higher ahead of September's key inflation report due later today, as investors assessed the impact of the ongoing U.S. government shutdown.