{
    "success": true,
    "data": {
        "id": 1746606,
        "msgid": "rupiah-weakens-as-foreign-capital-outflows-bank-indonesia-governor-explains-causes-1780907610",
        "date": "2026-05-18 17:11:19",
        "title": "Rupiah Weakens as Foreign Capital Outflows, Bank Indonesia Governor Explains Causes",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Finance",
        "summary": "The Indonesian Rupiah closed significantly lower against the US Dollar, hitting a historic low of Rp17,640\/US$. Bank Indonesia Governor Perry Warjiyo attributed the depreciation to a combination of seasonal domestic factors and global geopolitical tensions.",
        "content": "<p>The Rupiah closed weaker against the US Dollar in Monday\u2019s trading.\nAccording to Refinitiv data, the currency ended the session in the red,\nweakening by 1.03% to the level of Rp17,640\/US<span class=\"math inline\">.<em>C<\/em><em>o<\/em><em>n<\/em><em>s<\/em><em>e<\/em><em>q<\/em><em>u<\/em><em>e<\/em><em>n<\/em><em>t<\/em><em>l<\/em><em>y<\/em>,\u2006<em>t<\/em><em>h<\/em><em>e<\/em><em>R<\/em><em>u<\/em><em>p<\/em><em>i<\/em><em>a<\/em><em>h<\/em><em>h<\/em><em>a<\/em><em>s<\/em><em>o<\/em><em>n<\/em><em>c<\/em><em>e<\/em><em>a<\/em><em>g<\/em><em>a<\/em><em>i<\/em><em>n<\/em><em>b<\/em><em>r<\/em><em>e<\/em><em>a<\/em><em>c<\/em><em>h<\/em><em>e<\/em><em>d<\/em><em>t<\/em><em>h<\/em><em>e<\/em><em>p<\/em><em>s<\/em><em>y<\/em><em>c<\/em><em>h<\/em><em>o<\/em><em>l<\/em><em>o<\/em><em>g<\/em><em>i<\/em><em>c<\/em><em>a<\/em><em>l<\/em><em>t<\/em><em>h<\/em><em>r<\/em><em>e<\/em><em>s<\/em><em>h<\/em><em>o<\/em><em>l<\/em><em>d<\/em><em>a<\/em><em>b<\/em><em>o<\/em><em>v<\/em><em>e<\/em><em>R<\/em><em>p<\/em>17,\u2006000\/<em>U<\/em><em>S<\/em><\/span>,\nmarking its weakest closing position in history.<\/p>\n<p>Bank Indonesia (BI) Governor Perry Warjiyo addressed the exchange\nrate depreciation, stating that the weakness observed since the\nbeginning of the year is driven by both fundamental and technical\nfactors. From a fundamental perspective, Perry believes the current\nexchange rate does not align with Indonesia\u2019s economic conditions.\n\u201cBased on our experience through various crises, we believe it is\nundervalued,\u201d Perry stated during a working meeting with Commission XI\nof the Indonesian House of Representatives (DPR RI) on Monday.<\/p>\n<p>Domestically, Perry noted that seasonal factors are also putting\npressure on the Rupiah, specifically related to the Hajj pilgrimage,\ndividend payments, and corporate debt repayments.<\/p>\n<p>Regarding technical factors, the depreciation is being driven by\ngeopolitical tensions in the Middle East. The risks in the Middle East\nare substantial and have global implications. \u201cThis impact leads to\ndeclining global growth and soaring oil prices. Brent was at US$120 and\nis now at US$111. This mirrors previous periods,\u201d he explained.<\/p>\n<p>In tandem with this, high inflation in the US has led the Federal\nReserve to pause reductions to the Fed Funds Rate (FFR). As a result, US\nTreasury yields have risen, triggering an asset shift from emerging\nmarkets (EM) to the US.<\/p>\n<p>Despite the weakness, Perry noted that the movement of the Rupiah\nagainst the US Dollar remains stable so far. \u201cWe checked the\nyear-to-date figures, and it stands at 5.4%, which is actually still\nstable,\u201d said Perry. He emphasised that Bank Indonesia does not target a\nspecific exchange rate level, but rather focuses on maintaining\nstability. \u201cWe are not talking about a specific level of the Rupiah\nexchange rate; we are talking about stability. What we are monitoring\nnow is what we call stability, specifically the average 20-day exchange\nrate volatility,\u201d he asserted.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/rupiah-weakens-as-foreign-capital-outflows-bank-indonesia-governor-explains-causes-1780907610",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}