The Indonesian rupiah weakened toward IDR 16,830 per dollar on Thursday, continuing its decline from the prior session. The move largely tracked a firmer greenback, as the dollar index climbed to a near two-week high after markets scaled back expectations for the pace of potential Fed rate cuts. Locally, fresh data showed Indonesia’s economy grew 5.11% in 2025, falling short of the government’s 5.2% target despite solid growth in Q4. The outcome reinforced bets that Bank Indonesia may have room to ease policy further this year, as it has emphasized the need to support growth amid views that output remains below potential, even after a cumulative 150bp cut since September 2024. Sentiment was also cautious ahead of January’s forex reserves data due Friday, following a nine-month high in December. However, the downside was partially tempered by comments from Finance Minister Purbaya Yudhi Sadewa, who said a move toward IDR 15,000 per dollar is achievable under supportive policy measures.