After BI Rate Hike: Foreign Investors Flood Indonesia, Dollar Retreats from Rp18,000 Level

Jakarta, CNBC Indonesia - Foreign investors have begun placing capital domestically after the benchmark interest rate, or BI Rate, was raised to 5.50%. The rupiah exchange rate has started to move away from the Rp18,000 per US dollar level.

This was conveyed by Ramdan Denny Prakoso, Head of the Bank Indonesia Communication Department, in a written statement on Friday (12/6/2026).

“Following the BI-Rate increase to 5.50%, along with the strengthening of SRBI and government bond (SBN) yields, foreign investors responded positively to the reinforced policy mix,” he stated.

In line with the BI rate hike, the yield on Bank Indonesia Rupiah Securities (SRBI) was also pushed higher to make it more attractive to investors.

“This is reflected in the increased foreign capital inflows into SRBI instruments following the SRBI auction on 10 June 2026. Foreign capital inflows have also started to return to the SBN market, particularly in short and medium tenors,” he explained.

Over the past few days, the rupiah has been trading in the range of Rp17,800-17,900 per US dollar. Ramdan said Bank Indonesia will continue to monitor global and domestic financial market developments and maintain the attractiveness of domestic financial instruments to support foreign capital inflows.

“Bank Indonesia will also continue to optimise rupiah exchange rate stabilisation measures through non-deliverable forward (NDF) interventions in the offshore market as well as spot and domestic NDF transactions in a consistent and measured manner.”