Rupiah flat as post-MSCI euphoria fades

The rupiah exchange rate against the US dollar closed flat on Thursday, unchanged at Rp17,877 per US dollar compared with the previous close of Rp17,877 per US dollar.

Analyst Rully Nova of Bank Woori Saudara said the rupiah moved sideways as the euphoria following the release of the Morgan Stanley Capital International (MSCI) review faded.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) weakened to Rp17,882 per US dollar from Rp17,876 per US dollar previously.

“The rupiah’s stable close today was influenced more by the fading euphoria over the MSCI release and market participants’ focus on the candidates for Bank Indonesia Deputy Governor,” he told ANTARA in Jakarta on Thursday.

Global index provider MSCI Inc announced the MSCI Equity Indexes August 2026 Index Review on 12 August 2026 Central European Summer Time (CEST), with all changes to take effect at the close of trading on 31 August 2026 and effective on 1 September 2026.

In its announcement, MSCI removed two Indonesian stocks from the MSCI Global Standard Index and added no Indonesian stocks to the index.

MSCI also made adjustments to the MSCI Global Small Cap Index category for Indonesian stocks, adding one stock and removing nine stocks from the index.

Meanwhile, the government has sent a presidential letter to fill the position of Senior Deputy Governor of Bank Indonesia. The name proposed for Senior Deputy Governor is Aida S Budiman, while for Deputy Governor two names have been put forward: Solikin M Juhro and M Anwar Bashori.

“Globally, developments in the Middle East conflict remain in focus, with no breakthrough in US-Iran negotiations even though the index has stabilised below 100 and oil prices are starting to ease,” Rully said.