Rupiah Strengthens Again: US Dollar Exchange Rate on Monday, 12 October 2026

The rupiah strengthened against the US dollar at the opening of trading on Monday (12 October 2026). It rose by 5 points, or 0.03%, to Rp17,894 per US dollar, compared with the previous session’s closing level of Rp17,899.

The early-week gain extended the rupiah’s positive movement at the end of the previous week. At the close of trading on Friday (9 October 2026), the currency had strengthened by 26 points, or 0.09%, to Rp17,899 per US dollar from the previous close of Rp17,915.

Despite its gains, the rupiah remains affected by a range of domestic and external factors. Domestic consumption, developments in foreign exchange reserves and the direction of US monetary policy are among the issues market participants need to watch.

Muhammad Amru Syifa, from the Research and Development division of the Indonesia Commodity & Derivatives Exchange (ICDX), said the rupiah’s appreciation at the end of last week was partly influenced by the Consumer Confidence Index (CCI) for September 2026, which remained in optimistic territory.

Bank Indonesia’s consumer survey, released on Thursday (8 October 2026), recorded the September CCI at 118.1. This was slightly lower than August’s 118.5, but remained above the 100 threshold that indicates consumer optimism.

“Bank Indonesia’s consumer survey released on Thursday (8 October) showed the September Consumer Confidence Index at 118.1, down from 118.5 in the previous month. Although it eased slightly, the index remained in optimistic territory because it was above 100,” he said.

Consumer optimism is one indicator attracting attention because it is linked to public perceptions of economic conditions and the outlook for consumption. Nevertheless, domestic consumption and upcoming economic indicators need to be monitored to assess the strength of domestic demand.

Another factor in focus for the market is Indonesia’s foreign exchange reserves. At the end of September 2026, reserves stood at US$146.3 billion, down US$200 million from US$146.5 billion in August 2026.

Although reserves declined, they remained equivalent to 5.3 months of imports, or 5.2 months of imports and government external debt servicing. This is above the international adequacy benchmark of around three months of imports, providing a buffer to meet external obligations and withstand pressure in global financial markets.