Indonesia's central bank has kept its policy rate unchanged for a third consecutive meeting, opting to rely on currency intervention and other policy tools as it tackles fresh pressures on the rupiah from rising oil prices and higher US Treasury yields.

New Governor Destry Damayanti and the policy committee kept the policy rate at 5.75% on Wednesday, matching the expectations of 33 out of 36 economists surveyed by Bloomberg. The remaining economists had anticipated a 25-basis-point rate hike.

This decision to hold rates signals that policymakers remain willing to use intervention and other measures—including the issuance of rupiah-denominated securities by the central bank—as the first line of defense for the currency, even as the external environment grows increasingly challenging.

Ahead of the rate decision, Destry stated that the central bank would continue deploying all available policy tools to stabilize the rupiah exchange rate, including expanding incentive schemes to attract foreign capital inflows.