Senior Deputy Governor Candidate Aida Reveals Heavy Rupiah Challenges in 2026

Jakarta, CNBC Indonesia - The sole candidate for Senior Deputy Governor of Bank Indonesia (BI), Aida S. Budiman, has acknowledged that the challenges facing the rupiah in 2026 are considerable. Aida made the remarks during a fit and proper test with Commission XI of the Indonesian House of Representatives (DPR RI) on Wednesday (26/8/2026).

Aida explained that movements in the rupiah exchange rate are closely linked to the condition of the current account and financial transactions. When financial inflows strengthen, the rupiah tends to face appreciation pressure. Conversely, when global sentiment deteriorates and capital flows come under pressure, the rupiah can experience depreciation.

According to Aida, conditions in 2026 will be far more challenging because high global uncertainty causes investor perceptions to change rapidly.

“2026 is very difficult because we do not know about the war and perceptions are changing,” Aida said in her presentation.

Under these conditions, Aida said BI does not target the exchange rate at a specific level. The central bank’s main focus is to keep rupiah movements stable and prevent overshooting or excessive weakening beyond its fundamental condition.

She explained that the rupiah experienced a depreciation trend in 2025. However, BI continued to strive to maintain stability in exchange rate movements so that the weakening did not occur excessively.

Entering 2026, Aida sees that there are still fundamental factors that can serve as a buffer. One of them is the current account deficit, which is estimated to remain at a manageable level of around 3.3% of gross domestic product (GDP).

According to her, this condition helps to contain pressure on the rupiah so that exchange rate movements can gradually return to being more stable.

“With the blue colour, the 3.3% current account deficit can be maintained, and gradually the exchange rate tends to be stable,” she explained.

Aida also stressed the importance of maintaining price stability amid pressure on the exchange rate. A weakening rupiah has the potential to increase the price of imported goods and ultimately drive inflation.

Therefore, exchange rate stability is an important part of BI’s efforts to keep inflation within the target agreed with the government.

“Inflation is being attempted to stay within the target agreed between BI and the Ministry of Finance,” Aida said.