Indonesians Rush to Hoard Dollars as Foreign Currency Deposits Surge 42%

Indonesians are increasingly fond of saving in dollars amid the strengthening of the US dollar and the weakening of the rupiah.

The value of foreign currency savings in Indonesian banks rose sharply in June 2026. Its growth was nearly three times faster than savings in rupiah.

Bank Indonesia (BI) recorded total third-party funds (DPK) in June 2026 at Rp9,718.8 trillion, growing 8.1% year-on-year (yoy). That growth slowed compared with May 2026, when it reached 10.8% yoy.

Although overall growth in third-party funds slowed, there was a fairly wide gap between rupiah and foreign currency deposits.

Rupiah deposits stood at Rp8,112.5 trillion, growing 6.3% yoy. Meanwhile, foreign currency third-party funds surged 18.5% to Rp1,606.2 trillion.

Foreign currency deposits stood at Rp1,355.3 trillion in June 2025. Thus, the value of foreign currency savings in the banking system rose by Rp250.9 trillion in a single year.

By comparison, rupiah deposits rose by Rp479.5 trillion from Rp7,633 trillion in June 2025. Although the nominal increase was larger, its percentage growth was far below that of foreign currency savings because the rupiah deposit base was also much higher.

Foreign Currency Savings Grow Four Times Faster

High growth was also seen in foreign currency savings accounts. Foreign currency savings reached Rp261.7 trillion in June 2026, up 27.5% from Rp205.3 trillion in the same period a year earlier.

In one year, foreign currency savings increased by around Rp56.4 trillion.

That growth was roughly four times faster than rupiah savings, which grew only 6.8% yoy.

Rupiah savings rose from Rp2,748.7 trillion in June 2025 to Rp2,935.7 trillion in June 2026. In nominal terms, rupiah savings rose by Rp187 trillion in a year.

Although still growing strongly, foreign currency savings growth slowed slightly compared with May 2026, when it reached 29.9% yoy. Rupiah savings growth also slowed from 8.7% to 6.8%.

A difference was also seen in current accounts (giro). Foreign currency current accounts grew only 6% to Rp850.2 trillion, while rupiah current accounts rose 11.8% to Rp2,237.7 trillion.

Foreign Currency Time Deposits Jump 42%

The biggest surge occurred in time deposits held in foreign currency.

BI recorded foreign currency time deposits at Rp494.3 trillion in June 2026, rocketing 42% from Rp348.1 trillion in June 2025. Over the year, their value increased by Rp146.2 trillion.

This was in stark contrast to rupiah time deposits, which grew only 1.9%, from Rp2,883 trillion to Rp2,939.1 trillion.

Of the total Rp250.9 trillion rise in foreign currency third-party funds over the past year, around Rp146.2 trillion — more than half — came from foreign currency time deposits.

The increase in foreign currency time deposits was even more visible in month-on-month movements. Compared with May 2026, foreign currency time deposits rose by Rp43.3 trillion, or about 9.6%.

Over the same period, foreign currency current accounts actually fell by Rp23 trillion, while foreign currency savings rose by only Rp800 billion. Overall, foreign currency third-party funds rose by Rp21.1 trillion in a single month.

These movements indicate a shift in the composition of foreign currency savings. Funds placed in current accounts declined, while money flowing into time deposits rose sharply.

The surge in time deposits also coincided with rising term deposit interest rates across the banking sector in general.

The weighted average interest rate on one-month time deposits rose from 4.28% in May to 4.77% in June 2026. Three-month deposit rates increased from 4.73% to 5.03%, while six-month rates rose from 4.65% to 4.95%.

The largest increase occurred on 12-month deposits, which rose from 4.50% to 5.44% in just one month.

The Rupiah Depreciation Effect

Although foreign currency savings growth was high, one point deserves attention: BI presents foreign currency savings in rupiah terms.

When the rupiah weakens against foreign currencies, the rupiah value of foreign currency deposits rises automatically, even if the amount of foreign currency held does not change by as much as the increase in rupiah terms.

Therefore, the 27.5% growth in foreign currency savings and 42% growth in foreign currency time deposits were likely influenced, in part, by exchange rate movements.