Rupiah Under Pressure as it Hits Rp18,000 per US Dollar; Bank Indonesia Raises Interest Rates to 5.5 Per Cent
Bank Indonesia (BI) has taken further steps to strengthen the stabilisation of the rupiah exchange rate amidst increasing pressure from global markets and foreign investment outflows. This policy is being pursued to maintain national economic resilience while ensuring that inflation targets remain within the established range.
Governor of Bank Indonesia, Perry Warjiyo, stated that recent developments in the rupiah exchange rate have shown a weaker condition than previously estimated. This situation has become a primary concern for monetary authorities due to its potential to affect broader economic stability.
According to Perry, the pressure on the rupiah is influenced not only by ongoing global uncertainty but also by the increasing domestic demand for foreign exchange. Additionally, the outflow of foreign portfolio investment from Indonesian financial markets has exerted further pressure on the exchange rate movement.
“The rupiah exchange rate has shown weaker developments than expected. In addition to ongoing global volatility and high domestic demand for foreign currency, the weakening of the rupiah is also driven by the outflow of foreign portfolio investment from Indonesia,” Perry said in a statement in Jakarta on Tuesday (9/6/2026).
To maintain national economic resilience, Bank Indonesia considers additional measures necessary to strengthen domestic financial market stability. A primary focus is to increase the attractiveness of Indonesian financial assets to regain the interest of global investors.
According to Perry, the return of foreign capital inflows is vital to supporting exchange rate stability and strengthening the national economic foundation amidst high external challenges. BI views rupiah stability as having a strategic role in maintaining the resilience of Indonesia’s external sector. With a more stable exchange rate, risks to the national economy can be minimised, including the impacts of ongoing global financial market volatility.
“Bank Indonesia deems it necessary to take further steps to strengthen the stabilisation of the rupiah exchange rate by restoring yields and providing other incentives to encourage the inflow of foreign investment,” said Perry.
In addition to maintaining exchange rate stability, Bank Indonesia also places inflation control as one of the primary priorities of its monetary policy.