Get Ready! Numerous Announcements Could Shake the Market Next Week
Next week, several significant announcements are expected to influence capital markets and the Rupiah exchange rate. Bank Indonesia is scheduled to hold a Board of Governors Meeting (RDG) on 19-20 May 2026 to assess interest rate levels. In the previous meeting held on 21-22 April 2026, Bank Indonesia decided to maintain the BI-Rate at 4.75%, the Deposit Facility rate at 3.75%, and the Lending Facility rate at 5.5%.
“This decision remains consistent with efforts to increase the effectiveness of the strategy to adjust the interest rate structure of monetary operation instruments to strengthen the stability of the Rupiah exchange rate against the impact of worsening global economic conditions due to the war in the Middle East. Moving forward, Bank Indonesia is prepared to implement further monetary policy strengthening as required to maintain Rupiah stability and keep 2026 and 2027 inflation within the target of 2.5±1%,” stated Bank Indonesia Governor Perry Warjiyo. The central bank’s decision is highly anticipated as a key sentiment driver for the Rupiah, which recently closed a short trading week in the green, ending Wednesday (13/5/2026) at Rp17,460/US$.
The impact of the MSCI announcement on the Indonesian stock market is also expected to persist. Following the May 2026 global index review, Indonesia faced a significant blow as six domestic stocks were removed from the MSCI Global Standard Index with no new additions. The removed stocks include PT Amman Mineral Internasional Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya Tbk (AMRT). Conversely, PT Sumber Alfaria Trijaya Tbk (AMRT) was added to the MSCI Global Small Cap Indexes, though 13 other Indonesian stocks were removed from the small-cap index, including PT Aneka Tambang Tbk (ANTM) and PT Astra Agro Lestari Tbk (AALI).
Furthermore, on 21 May 2026, the US Federal Reserve will release the full minutes from the April FOMC meeting. The Fed previously maintained the federal funds rate within the 3.5%-3.75% target range for the third consecutive meeting in April 2026. The 8-4 vote, which saw four officials dissenting, marks the first time since October 1992 that such a significant number of members opposed an FOMC decision. The central bank reiterated its commitment to assessing incoming data and risk balances, noting that developments in the Middle East contribute to high economic uncertainty.