Indonesia may need to deploy more aggressive measures, including further rate hikes, to sustainably lift the rupiah from near-record lows, according to analysts.

Indonesia’s central bank pledged last week to make “necessary adjustments” to its policy tools to maintain rupiah stability as elevated global yields, rising oil prices and the risk of losing its emerging-market status under MSCI Inc. spur foreign outflows. BI had kept its key rate at 5.75%, opting for currency intervention and hedging incentives over monetary tightening that could weigh on the economy.

The currency weakened 0.4% on Monday, approaching the historic low notched in early June, with the central bank saying it is monitoring the situation and looking into the root cause of the swings. The rupiah has weakened some 8% this year against the dollar, neck and neck with the Philippine peso for worst performer in Asia. Here’s a look at other steps Indonesian authorities may consider: Analysts expects BI to raise borrowing costs by 25 basis points this quarter and again next year if capital outflows intensify and put further pressure on the rupiah.

BI’s rate pause came despite growing calls for tighter policy after MSCI’s double-downgrade threat triggered significant equity outflows. The rupiah weakened further past 18,000 per dollar, nearing a record low.

“Indonesia’s sizable external financing needs and elevated global yields will likely require higher rates to sustain foreign inflows,” Goldman Sachs Group Inc. economists including Danny Suwanapruti wrote in a note.

Under Governor Destry Damayanti’s leadership, BI has shifted away from using its own short-term rupiah securities, known as SRBI, as its primary tool to attract foreign inflows.

But if outflows accelerate, Citigroup Inc. economist Helmi Arman said BI could raise SRBI yields again before resorting to policy-rate hikes.

The average yield on 12-month SRBI stands at about 6.6%, down from a peak of 7.7% in June, when the rupiah hit a record low.

BI is increasingly using currency-hedging discounts to attract foreign investment into Indonesian assets. It raised the discount on non-deliverable forward hedges to as much as 45% for 12-month tenors, from 30% in September and 15% in July.

The incentives could be expanded further as they gain traction, with assets pledged under the program now reaching nearly $10 billion since it was first introduced.

BI continues expanding its local currency transaction scheme to limit its exposure to the greenback. It currently covers seven countries including China, Japan and Singapore to reduce reliance on the US dollar in cross-border trade and investment.

Under the latest arrangement, BI allows investors to hedge rupiah exposure through overseas banks partnered with designated domestic lenders, making it easier to manage currency risk and support portfolio inflows. From January, it will be expanded to cover Indonesian equities.

The government could tighten export-proceeds rules by extending their retention period onshore or requiring conversion into rupiah within a set time frame. It currently mandates natural-resource exporters to keep their foreign-currency earnings domestically for at least a year.

BI could also step up the enforcement of rules limiting dollar purchases without underlying transactions to $10,000 per customer per month, down from $100,000 previously.

The central bank had earlier restricted rupiah flows to non-residents in 2001 to curb speculation, but a similar move is seen unlikely given its broader range of market-based tools to support the currency.