Rupiah Faces Pressure from Moody’s Outlook Cut, GDP Miss, and Firm Dollar

2026-02-06 05:43 By Farida Husna 1 min. read

The Indonesian rupiah dipped further toward IDR 16,880 per dollar on Friday, closer to last month’s record trough of 16,985.

Sentiment weakened after Moody’s cut Indonesia’s credit rating outlook to negative from stable on Thursday, citing declining policy predictability.

The move followed MSCI’s warning over transparency issues, which recently triggered a market selloff exceeding USD 80 billion.

The rating agency highlighted concerns over policy effectiveness and weakening governance, cautioning that prolonged deterioration could erode Indonesia’s long-standing credibility.

Domestically, GDP growth reached 5.11% in 2025, falling short of the government’s 5.2% goal despite solid Q4 print, reinforcing expectations that Bank Indonesia may have scope to ease policy further this year.

Meanwhile, forex reserves fell in December from a nine-month high, narrowing the external buffer.

Globally, the dollar index notched a two-week high as broad risk-asset selloffs lifted demand for safe havens.



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