Rupiah Plunges 106 Points as Market Warily Eyes MSCI Review

The rupiah closed down 106 points at Rp17,861 per US dollar in Tuesday’s trading, weakening from the previous close of Rp17,755. Economist Ibrahim Assuaibi noted the market is wary of the MSCI review for August 2026, scheduled for 12 August, with rebalancing changes set to take effect after 31 August. He predicted the rupiah would fluctuate but close weaker in the range of Rp17,860 to Rp17,970 on Wednesday.

Some downward pressure was mitigated by President Prabowo’s appointment of Destry Damayanti as the sole candidate to replace Perry Warjiyo as Bank Indonesia Governor, which eased leadership concerns. However, negative sentiment persisted following the release of the latest Consumer Confidence Index, which fell from 117.8 in June 2026 to 116.8 in July, marking its lowest level since September 2025. In contrast, retail sales data from Bank Indonesia showed a 0.7 percent month-on-month increase in June, ending a two-month contractionary trend, supported by seasonal demand during the national religious holidays and school break period.