Rupiah Closes Weaker as Market Awaits Definitive BI Governor
The rupiah exchange rate against the US dollar closed weaker on Tuesday, 28 July 2026, falling 74 points or 0.41 percent to Rp 18,083 per US dollar compared to the previous close of Rp 18,009 per US dollar. The Jakarta Interbank Spot Dollar Rate (JISDOR) set by Bank Indonesia also weakened to Rp 18,088 per US dollar from Rp 17,995 per US dollar previously.
Market analyst Ibrahim Assuaibi stated that the rupiah’s depreciation was influenced by both domestic and global sentiment. Domestically, the market faces economic uncertainty following the sudden resignation of Perry Warjiyo. His resignation was met with a negative market response as, in the short term, it will increase market uncertainty due to the leadership transition amid the rupiah’s depreciation, heavy foreign capital outflows, and the potential for a global interest rate hike trend.
However, the appointment of Destry Damayanti has provided market optimism regarding the central bank’s commitment to maintaining rupiah exchange rate stability, controlling inflation, and preserving sustainable financial system stability. Market attention will now focus on the appointment of a definitive BI Governor, which is expected to meet market expectations and proceed smoothly, thereby safeguarding the central bank’s credibility and independence in setting and implementing monetary policy and maintaining rupiah stability.
Rating agency S&P Global Ratings has also responded to the news of Perry Warjiyo’s resignation. S&P Global Ratings Sovereign Analyst Rain Yin told Bloomberg that the resignation does not have a direct impact on Indonesia’s sovereign rating, although it could contribute to increased risks regarding the country’s policy outlook.
Globally, the market anticipates a high probability that the Federal Reserve will hold interest rates steady on Wednesday, 29 July 2026. CME FedWatch indicates around a 62 percent probability for a rate-hold scenario. However, the monetary policy outlook has been fluctuating this month amid the dynamic situation in the Middle East, as oil prices surged around 20 percent over two weeks when the US and Iran exchanged attacks related to control of the Strait of Hormuz. The market is also awaiting comments from Fed Chair Kevin Warsh, following hawkish remarks he has made since the last rate decision in June. Warsh has affirmed the Federal Open Market Committee’s commitment to price stability and has launched a comprehensive review of Fed operations by appointing five task forces to address various aspects, including communication and the inflation-targeting framework.