BI Governor Candidate Says Rupiah Should Be Stronger Than Rp17,700/US$

Jakarta, CNBC Indonesia - Bank Indonesia (BI) governor candidate Destry Damayanti believes the rupiah’s current exchange rate against the US dollar remains below its fundamental value, or undervalued.

She said the rupiah should in fact be able to strengthen from its current level, which is moving around Rp17,700 per US dollar.

“Our rupiah value could actually be lower than it is now,” Destry said during a fit and proper test at Commission XI of the House of Representatives (DPR), Jakarta, Wednesday (26/8/2026).

Destry believes the pressure on the rupiah has actually been driven more by sentiment factors rather than fundamental problems in the Indonesian economy.

“The problem is sentiment. Market sentiment can arise from various sources, including global sentiment, and these have converged, causing the rupiah’s movement to be as it is now,” Destry stressed.

Therefore, Destry noted that when sentiment factors subside, the rupiah exchange rate against the US dollar has proven able to strengthen quickly, and conversely, when sentiment worsens, pressure immediately occurs.

“When sentiment is positive, the rupiah can quickly strengthen, and we will always take advantage of the momentum. When sentiment is positive, BI will certainly continue to remain in the market. It is already our obligation to maintain the rupiah’s volatility, so in the short term there is an influence from sentiment,” she explained.

On that occasion, Destry emphasised that long-term efforts to strengthen rupiah exchange rate stability must continue, particularly by improving Indonesia’s balance of payments through stronger export performance.

“So for the long term, we have external sector challenges related to the balance of payments. Our balance of payments is homework for all of us, of course — the government, BI, and all of our society — so that our exports can be increased, and then services,” Destry stressed.