Indonesia’s economy grew by 5.11% in Q1 2024, surpassing expectations due to increased consumer spending fueled by holiday festivities and government cash handouts, providing the central bank with leeway to potentially tighten monetary policy further to support the weakening rupiah, which has depreciated by nearly 4% this year. The bank has expressed readiness to intervene more aggressively to stabilize the currency, especially if the Fed postpones interest rate cuts and Middle Eastern conflicts escalate.