Is Bank Indonesia the new CBRT?

Bank Indonesia’s apparent struggle to trade off the need to shore up the rupiah and support the economy (perhaps under political pressure) bears some similarities with Turkey’s experience over much of the past 15 years. To be clear, Indonesia is a long way from the situation Turkey got into (one in which the central bank, the CBRT, lost credibility and inflation became rampant). But we are concerned that, over time, Bank Indonesia may lose its grip on inflation and the rupiah will suffer larger and more disorderly falls.