Bank Indonesia Governor Confident Rupiah Will Strengthen Again in July-August 2026

Bank Indonesia (BI) Governor Perry Warjiyo has expressed confidence that the rupiah exchange rate will strengthen again between July and August 2026. He believes this trend will be driven by both global and domestic technical factors.

“The seasonality of July-August (2026) will see strengthening. Technical factors include both global and domestic elements,” Perry stated during a working meeting with Commission XI of the House of Representatives (DPR RI) on Monday (18/06/2026).

Perry noted that the year-to-date depreciation of the rupiah has not yet reached the Rp17,000 mark, currently sitting at approximately Rp16,800 per US dollar.

These remarks were made in response to a request from Commission XI of the DPR RI. The parliamentary commission urged Bank Indonesia to strive to bring the rupiah exchange rate closer to the Rp16,500 per US dollar level, which aligns with the macro assumptions set in the 2026 State Budget (APBN). This request was voiced by the Chairman of Commission XI, M. Misbakhun.

“We are requesting this because, as the Governor of BI stated, the rate was set at Rp16,500 (per US dollar); please bring it back towards that level,” said Misbaksun.

The rationale behind this request is that if the rupiah moves significantly above its assumed level, exchange rate stabilisation becomes difficult. Furthermore, the transmission of currency depreciation affects various aspects of the economy, including inflation, economic growth, and public purchasing power.

Currently, the rupiah is experiencing weakness. According to Refinitiv data, the rupiah weakened by 1.03% to the level of Rp17,640 per US dollar as of 15:00 WIB. This pressure was deeper than the morning opening, when the rupiah opened 0.97% lower at Rp17,630 per US dollar.