Government to Maintain Dollar at Rp16,800-17,500 by 2027, Here's How

The government is designing policy strategies to maintain the stability of the rupiah exchange rate against the US dollar in the range of Rp16,800/US$ to Rp17,500/US$ by 2027. This is revealed in the initial draft of the 2027 Government Work Plan (RKP) compiled by the Ministry of National Development Planning (PPN)/Bappenas. This exchange rate stability policy forms part of the monetary policy direction for 2027. “The monetary policy for 2027 is directed towards keeping inflation within the target range of 2.5±1.0 per cent (YoY) and rupiah exchange rate stability in the range of Rp16,800-Rp17,500 per US$, while still utilising space to support growth,” quoted from the initial draft RKP 2027 document, Friday (8/5/2026). To keep the exchange rate movement within that range, the government in the RKP 2027 outlines a series of main steps, such as stabilisation interventions in the foreign and domestic markets through Non-Deliverable Forward (NDF), spot, Domestic Non-Deliverable Forward (DNDF) transactions, as well as purchases of government bonds in the secondary market. Then, pro-market monetary operation strategies to strengthen policy transmission, attract foreign capital inflows by optimising SRBI instruments, and deepen the money and foreign exchange markets. The setting of an adaptive BI-Rate in response to global and domestic dynamics is also part of it; alongside efforts to maintain foreign exchange reserves for rupiah stabilisation and government foreign debt payments. “Also with strengthening foreign exchange transaction policies through adjustments to the threshold for foreign exchange buying and selling transactions and reporting of Foreign Exchange Flows (LLD), as well as strengthening policy communication to build positive expectations and market confidence,” quoted from the RKP 2027 document.