Video: These Are the Conditions Needed for the Rupiah to Strengthen to Rp 17,000/USD

Amidst the uncertainty clouding global financial markets, Bank Indonesia raised its benchmark interest rate to 5.50% in early June 2026 as part of efforts to maintain rupiah exchange rate stability and strengthen the appeal of the domestic market.

CIMB Niaga SEVP Head of Treasury Sales and Distribution, Hernaman Tandianto, assessed that the central bank’s weekly interest rate policy was responded to positively by the market, enabling the rupiah to return below the level of Rp 18,000 per US dollar.

Nevertheless, the rupiah’s movement cannot be separated from global sentiment related to the Iran-US war, as well as market confidence in the direction of government fiscal policy. Hernaman views the level of Rp 17,700 as a support level for the rupiah, and if the rupiah is able to break below Rp 17,600, the opportunity for the rupiah to return to Rp 17,000 per US dollar becomes greater.