Rupiah’s Movement Remains Clouded by Uncertainty over MSCI Plans

Jakarta (ANTARA) – The rupiah weakened by 30 points, or 0.17 per cent, to Rp18,022 per US dollar at Wednesday’s close, compared with the previous close of Rp17,992 per US dollar.

Muhammad Amru Syifa, Research and Development representative at the Indonesia Commodity & Derivatives Exchange (ICDX), said the rupiah’s movement remained clouded by uncertainty over Morgan Stanley Capital International’s (MSCI) plan to change the classification of Indonesia’s stock market, which could trigger foreign capital outflows.

“This is a concern because it could add pressure on the rupiah amid efforts to maintain financial market stability,” he told ANTARA in Jakarta on Wednesday.

Bank Indonesia’s decision to keep the BI-Rate at 5.75 per cent, raise the Deposit Facility rate to 5.00 per cent and maintain the Lending Facility rate at 6.50 per cent was also seen as an effort to make greater use of other instruments to curb pressure on the exchange rate.

Bank Indonesia has also strengthened incentives for the Domestic Non-Deliverable Forward (DNDF) hedging instrument to encourage foreign capital inflows and maintain rupiah stability.

Globally, the US Dollar Index (DXY) stood at around 101.79 on 21 October 2026, relatively stable after falling in the previous session.

“Lower US bond yields could support the rupiah, but geopolitical tensions in the Middle East and high oil prices remain risks that could boost demand for the US dollar,” Amru said.

Looking ahead, the rupiah’s movement is expected to be influenced by the effectiveness of Bank Indonesia’s stabilisation policies, developments in the DXY, and investors’ response to uncertainty in the domestic financial market.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened to Rp17,986 per US dollar on Wednesday, from Rp18,006 previously.