Rupiah Weakens Toward Record Low Ahead of Rate Decision

2026-01-21 04:15 By Farida Husna 1 min. read

The Indonesian rupiah hovered near IDR 16,970 per dollar on Wednesday, staying close to the 17,000 mark that would signal a new low.

Focus turned to the central bank’s policy decision later today, with interest rates expected to stay unchanged for a fourth straight month.

However, speculation over further easing intensifies, as policymakers aim to aid growth following last year’s disaster in Sumatra.

The board has already delivered 150bps of cuts over the past year amid subdued inflation.

Since early 2026, the rupiah has fallen near 2%, unsettled by renewed concerns over institutional independence after President Prabowo nominated his nephew to the central bank’s board of governors.

Finance Minister Purbaya Yudhi sought to reassure investors, affirming the bank’s autonomy and voicing confidence in a gradual rupiah recovery.

Globally, the dollar index fell for a third session after U.S.

President Trump vowed there was “no going back” on his Greenland plan, deepening geopolitical risks.



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