The Indonesian rupiah slipped to around IDR 16,875 per dollar on Wednesday, after trading largely flat in the prior two sessions amid holiday-thinned activity. The weakness tracked a firmer U.S. dollar index ahead of the Fed meeting minutes and the upcoming PCE Price Index. Sentiment was also cautious as Bank Indonesia kicked off a two-day policy meeting, with a decision due on Thursday. While the board is widely expected to keep its key rate unchanged at 4.75% for a fifth straight month, following a cumulative 150bp cut since September 2024, speculation for further easing grew as policymakers aim to bolster growth after last year’s disaster in Sumatra. Indonesia’s economy expanded 5.11% in 2025, missing the official target of 5.2%, and the 2026 growth goal stands higher at 5.4%. Finance Minister Purbaya Yudhi signaled fiscal policy will remain supportive of growth. Investors are also awaiting Q4 current account data, following its first surplus in nearly two years during Q3.