US Dollar at Rp17,600; BI Confident Rupiah Will Strengthen Soon

Jakarta, CNBC Indonesia – Bank Indonesia (BI) is confident that the rupiah will move higher against the United States dollar in the coming period. The US dollar has now perched at around Rp17,600.

BI Governor Perry Warjiyo explained that the rupiah’s depreciation was driven by the sharp strengthening of the US dollar. This has led to a broad depreciation of all currencies, including the rupiah, against the US dollar.

‘Capital outflows and a stronger US dollar are weighing on the rupiah’s exchange rate,’ he said at a press conference on Wednesday, 20 May 2026.

In addition, domestic demand for US dollars has risen, driven by dividends, the Haj season and payments on external debt (ULN).

‘To maintain rupiah stability, BI has increased foreign exchange intervention in the offshore NDF market as well as in the spot and DNDF markets,’ he explained.

BI has also optimised the SRBI to attract foreign funds into the domestic market with competitive yields.

‘Going forward, BI believes the rupiah will be stable and tend to strengthen,’ he concluded.