Dollar Holders Brace Themselves! BI Governor: Rupiah to Strengthen in July-August

Bank Indonesia (BI) believes the rupiah exchange rate will strengthen again against the US dollar, particularly during the July and August 2026 period. “The rupiah will strengthen in July and August,” stated BI Governor Perry Warjiyo during a working meeting with Commission XI of the House of Representatives (DPR) in Jakarta on Monday (18/5/2026).

The rupiah recently hit the level of Rp17,660/US$, according to Refinitiv, reflecting a depreciation of approximately 1.15%. Perry attributed the rupiah’s weakness to increasing global uncertainty, including the war in the Middle East, rising global oil prices, and the difficulty of lowering US interest rates, or the Fed Fund Rate.

Regarding domestic factors, Perry added that demand for the US dollar has also increased due to dividend distributions, foreign debt repayments, and the Hajj season. “Every year, there is pressure during May and June due to high demand,” he explained. Since the beginning of the year, the rupiah has averaged at the level of Rp17,900 per US dollar.