Jakarta, CNBC Indonesia - Foreign banks project that the Rupiah will\nremain within the Rp18,000 range until the end of the year. PT Bank HSBC\nIndonesia stated that the current weakening of the Garuda currency\nagainst the US Dollar is not caused by fundamental factors.<\/p>\n
Frederic Neumann, Chief Asia Economist and Co-head of Global\nInvestment Research Asia at HSBC, noted that the greenback is currently\nstrengthening. One contributing factor is the policy of the US central\nbank, the Federal Reserve, to increase its benchmark interest rate,\nwhich supports the US Dollar exchange rate.<\/p>\n
\u201cAs a result, we are seeing the dollar strengthen against many\ncurrencies. For example, against the Japanese, New Zealand, and Euro\ncurrencies,\u201d Neumann said during the HSBC Indonesia Summit 2026 Media\nBriefing at the St.\u00a0Regis Hotel on Tuesday (29\/09\/2026).<\/p>\n
Given that only three months remain until the end of the year, he\nstated that the Rupiah\u2019s position tends to be stable. Neumann suggested\nthe Rupiah might weaken slightly, but not significantly. He argued that\nthe movement of the Rupiah against the US Dollar reflects the strength\nof the Dollar rather than an underlying weakness in the Rupiah.<\/p>\n
\u201cSo, if you are asking for a target, a figure around 18,000, for\ninstance, is a reasonable target. That figure reflects the strength of\nthe dollar more than the weakness of the Rupiah,\u201d Neumann explained.<\/p>\n
He assessed that the Rupiah has the potential to appreciate next\nyear, as the US Dollar will eventually weaken, subsequently\nstrengthening the Rupiah.<\/p>\n
\u201cThe key message is that the specific weakening of the Rupiah that\noccurred at the beginning of the year is no longer present. That\nweakening trend has been successfully contained,\u201d Neumann concluded.<\/p>\n
He highlighted how Bank Indonesia (BI) responded firmly to the\nRupiah\u2019s weakening trend earlier this year by rapidly raising interest\nrates. This policy has been instrumental in reassuring investors\nregarding currency stability. Furthermore, the Indonesian government\ncontinues to move forward with various reforms involving financial\nofficials, including leadership changes at the Indonesia Stock Exchange\n(BEI), Bank Indonesia (BI), and even the Ministry of Finance.<\/p>\n
\u201cIn my view, all of this sends a signal that the government continues\nto strive to maintain macroeconomic stability, which certainly helps to\nstabilise the Rupiah,\u201d said Neumann.<\/p>\n
Under these circumstances, HSBC continues to monitor specific factors\nsuch as high real interest rates, relatively stable exchange rates, and\na controlled fiscal situation.<\/p>\n
Neumann mentioned that his focus has shifted towards structural\nreforms, specifically how far Indonesia can address infrastructure\ndeficits, the emphasis on education, and steps regarding regulation and\nenergy provision.<\/p>\n
\u201cThe macroeconomic challenges have actually been resolved. The focus\nis now more on micro-fundamental aspects, and the handling of these\nmicro-reforms will be the next stage of growth for Indonesia,\u201d Neumann\nexplained.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/foreign-bank-projects-rupiah-to-remain-at-this-level-by-end-of-2026-1790675647", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }