Rupiah Breaches Rp 17,100: Could Mortgage Instalments Follow Suit and Rise?

JAKARTA, KOMPAS.com - The weakening of the rupiah exchange rate, now above Rp 17,100 per US dollar. So, could this potentially lead to an increase in mortgage (KPR) instalments?

Banking observer and Senior Vice President of the Indonesian Banking Development Institute (LPPI) Trioksa Siahaan stated that increases in KPR instalments heavily depend on movements in lending rates, not solely on the exchange rate.

“An increase in instalments depends on rises or fluctuations in interest rates; if the impact of the rising dollar rate also causes lending rates to increase, then credit instalments will also rise,” he told Kompas.com on Wednesday (15/4/2026).

The rise in the BI rate will ultimately increase banks’ cost of funds or the costs banks pay for deposit savings, savings accounts, and the like.

Then, the increase in the cost of funds will drive up lending rates because banks need to maintain profit margins to remain healthy.

“So, the main factor in lending rate fluctuations is the banks’ cost of funds,” he emphasised.

In agreement, banking observer and payment systems practitioner Arianto Muditomo said that the rupiah’s weakening does not directly affect KPR instalments, especially those with floating rates.

According to Arianto, lending rates in Indonesia are more determined by internal factors such as the cost of funds, banking liquidity, and reference interest rate policies.

“So, not the exchange rate directly. However, indirect impacts still exist, namely if the rupiah’s weakening triggers inflationary pressures or prompts BI to maintain or raise interest rates, then floating KPR rates could potentially rise in subsequent periods,” he explained to Kompas.com on Wednesday.

Nevertheless, such adjustments are not made aggressively. This is because banks still consider various factors such as public purchasing power, credit quality, and business strategies.

In addition, regulatory policies that no longer report problematic credits below Rp 1 million provide banks with room to maintain retail portfolio stability.

“Banks have room to maintain retail portfolio stability without overreacting to small risks, so interest rate adjustments are usually gradual and measured, not reactive solely to rupiah movements,” he stated.

For information, the rupiah exchange rate in the spot market opened slightly stronger at the start of trading on Wednesday (15/4/2026).

At 09.00 WIB, the spot rupiah was at Rp 17,123 per US dollar, strengthening 0.02 percent from the previous day at Rp 17,127 per US dollar.

Meanwhile, the dollar index, which reflects the US dollar’s exchange rate against major world currencies, was at 98.12, unchanged from the previous day at 98.12.