Destry Affirms Bank Indonesia Independence, Rupiah Strengthens
The rupiah exchange rate against the US dollar at the close of trading on Friday (28/8/2026) strengthened by 51 points, or 0.29 percent, to Rp17,693 per US dollar, compared with the previous close of Rp17,744 per US dollar. Research and Development analyst at the Indonesia Commodity & Derivatives Exchange (ICDX), Muhammad Amru Syifa, said the rupiah’s strengthening was influenced by the direction of Bank Indonesia’s policy after Destry Damayanti affirmed that stronger synergy with the government would not reduce BI’s independence and credibility.
“Destry also stressed the importance of a policy mix as well as deepening the money and foreign exchange markets to maintain rupiah stability,” he said in Jakarta on Friday (28/8/2026).
House of Representatives Commission XI, through an internal meeting, approved Destry Damayanti as the elected Governor of Bank Indonesia for the 2026–2031 period, and Aida S. Budiman as the elected Senior Deputy Governor of BI for the 2026–2031 period.
As a result, Destry definitively replaces Perry Warjiyo, who resigned from the position of BI Governor on 25 July 2026. Meanwhile, the Senior Deputy Governor position left vacant by Destry has now been assumed by Aida S. Budiman.
In general, Destry explained that BI fundamentally supports the government in achieving higher economic growth.
The Financial Sector Development and Strengthening Law (UU P2SK) has also mandated BI to create a conducive economic climate to encourage real sector growth and job creation.
“Going forward, investors will monitor a number of domestic agendas, especially inflation and trade data, as well as developments in the process of appointing the next Governor of Bank Indonesia,” Amru said.
Looking at global sentiment, he continued, the movement of the US dollar remains the main factor determining the rupiah’s direction.
The US dollar moved relatively narrowly, with the DXY around 99.18, while the 10-year US Treasury yield remained at a fairly high level of around 4.68 percent. These conditions are considered to limit the room for rupiah appreciation.
“Market attention today is focused on the speech by Federal Reserve Chair Kevin Warsh at Jackson Hole for clues on the direction of US interest rate policy. More hawkish statements could potentially boost the US dollar and pressure the rupiah, while more dovish signals could provide room for the rupiah to continue strengthening,” he said.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened today to Rp17,703 per US dollar, from Rp17,762 per US dollar previously.