US Dollar Falls to Rp18,050 After BI Raises Benchmark Interest Rate

The rupiah closed significantly stronger after Bank Indonesia (BI) raised its benchmark interest rate. On Tuesday (9/6/2026) at 12.30 WIB, Bank Indonesia announced a 25 bps increase in the BI rate to 5.50% during its Weekly Board of Governors Meeting. Citing Refinitiv data, as of 15.00 WIB, the rupiah was at the level of Rp18,050/US.ThispositionedtheGarudacurrencytostrengthenbyaround0.66. This forecast would be stronger compared to the current position, which is already above Rp18,000/US$. ‘We also view that in 2027 the rupiah will strengthen to Rp16,800-17,500,’ revealed BI Governor Perry Warjiyo in a working meeting with the House of Representatives’ Budget Committee in Jakarta on Tuesday (9/6/2026). Perry’s confidence refers to the economic conditions next year, which are estimated not to be as bad as 2026. BI’s estimate for the global economy is 3.1%, while Indonesia is in the range of 5.1-5.9%. Furthermore, regarding strong economic fundamentals, as measured by economic growth, low inflation, a controlled current account deficit, and more than sufficient foreign exchange reserves. ‘Good economic fundamentals will support the strengthening of the exchange rate,’ he added. The strengthening of the rupiah will also be aided by the presence of PT Danantara Sumberdaya Indonesia (DSI), which will drive an increase in exports, foreign exchange proceeds from exports, and state revenue. In addition, Perry confirmed BI’s presence in the market to maintain the exchange rate and conduct intervention for stability. ‘Then close policy coordination with the government,’ he concluded.