Rupiah Weakens Further as BI Cites Global Uncertainties

BANK Indonesia (BI) has commented on the rupiah’s continued depreciation during the Iduladha holiday period. On Thursday, 28 May 2026, the rupiah closed at Rp17,845 per US dollar, then weakened further to Rp17,880 per dollar on Friday, 29 May.

BI’s Communication Department Head Ramdan Denny Prakoso stated that ongoing global uncertainties, particularly the Middle East conflict, are pressuring the rupiah. He added that seasonal foreign currency demand for foreign debt payments and dividend repatriation, coupled with limited US dollar inflows, has exacerbated the situation. BI is committed to maintaining exchange rate stability through foreign exchange market interventions, including Non-Deliverable Forward (NDF) transactions abroad, spot and Domestic Non-Deliverable Forward (DNDF) operations domestically, and measured purchases of government securities (SBN) in the secondary market. Additionally, BI is strengthening its monetary policy mix by adjusting interest rate instruments to enhance domestic asset attractiveness and support foreign capital inflows. The central bank has also set a monthly foreign currency purchase limit of US$25,000 per person starting June 2026.

Denny said BI will continue monitoring global and domestic financial markets and take measured steps to preserve rupiah stability and bolster Indonesia’s external economic resilience. Meanwhile, Ibrahim Assuaibi of PT Traze Andalan Futures noted that domestic factors, including the Federal Reserve’s hold on interest rates, have driven foreign capital outflows from emerging markets like Indonesia, leading investors to shift towards lower-risk assets. He added that the rupiah’s recent weakness coincided with pressure on equity and bond markets, influenced by MSCI sentiment, fiscal deficit concerns, and rising SBN yields.