Rupiah Exchange Rate Strengthens, BI Cites Stabilisation

The rupiah exchange rate on Tuesday (18/8) was recorded at Rp17,855 per US dollar, strengthening 0.78% (point-to-point) compared with the level at the end of July 2026. Acting Governor of Bank Indonesia (BI), Destry Damayanti, said that the strengthening of the rupiah was supported by Bank Indonesia’s reinforced stabilisation policy response.

“This development is supported by Bank Indonesia’s strategy of optimising all monetary instruments and expanding incentive policies to increase foreign portfolio investment inflows and strengthen rupiah exchange rate stability, while accelerating the deepening of the money market and foreign exchange market (PUVA),” Destry said at the BI Board of Governors Meeting (RDG) press conference on Wednesday (19/8).

She added that the incentive for Sell Hedge Swaps was increased to 12.5% and an incentive for Sell Hedge DNDF was provided at 15%. In addition, incentives were also provided to increase Local Currency Transactions (LCT) with partner countries in the form of a Buy Hedge Swap premium of 10% and a reduction in the Sell Hedge DNDF premium of 10%.

Bank Indonesia will continue to pursue various strategies to maintain rupiah exchange rate stability. “Going forward, the rupiah exchange rate is forecast to remain stable, supported by the strengthening of Bank Indonesia’s stabilisation policy response,” she concluded.