The challenges encountered after the financial crises of 1997–98 and 2008–09 have revealed some valuable lessons with regard to monetary policy. In a small open economy, such as that of Indonesia, the multiple challenges facing monetary policy as a result of capital flow dynamics, amid inflationary pressures, suggest that the monetary authorities should employ multiple instruments. This paper shows that coordinated implementation of a policy instrument mix should ultimately be part of an important strategy for optimally managing the monetary policy trilemma in the current climate, which is fraught with widespread uncertainty.