Rupiah flat as post-MSCI euphoria fades

The rupiah closed flat at Rp17,877 per US dollar on Thursday, unchanged from the previous day’s close. Rully Nova, an analyst at Bank Woori Saudara, stated that the stable closing was influenced by the fading euphoria following the Morgan Stanley Capital International (MSCI) index review announcement. Market participants are now focusing on the candidates for Bank Indonesia’s (BI) deputy governor positions. The Jakarta Interbank Spot Dollar Rate (JISDOR) published by Bank Indonesia weakened slightly to Rp17,882 per US dollar from Rp17,876 previously. Global index provider MSCI Inc announced its MSCI Equity Indexes August 2026 Index Review on 12 August 2026, Central European Summer Time (CEST), with all changes effective as of the market close on 31 August 2026. The review saw two Indonesian stocks removed from the MSCI Global Standard Index, with no Indonesian stocks added. Adjustments were also made to the MSCI Global Small Cap Index for Indonesian stocks, adding one stock and removing nine. Domestically, the government has sent a presidential letter to fill the positions of BI Senior Deputy Governor and Deputy Governors. The government nominated Aida S Budiman for Senior Deputy Governor, and Solikin M Juhro and M Anwar Bashori for the two Deputy Governor posts. Rully added that global attention remains on developments in the Middle East conflict, noting a lack of breakthrough in negotiations between the United States and Iran, even though the dollar index has stabilised below 100 and oil prices are beginning to ease.