Rupiah Remains Weak Ahead of Policy Decision

2026-04-22 04:13 By Farida Husna 1 min. read

The Indonesian rupiah hovered near IDR 17,170 on Wednesday, holding above the key 17,000 level after briefly hitting a record low around 17,200 last week.

Sentiment remained fragile as the U.S.

dollar firmed, with haven demand rising after plans for a second round of U.S.–Iran peace talks collapsed.

Bank Indonesia is set to announce its policy decision later today, with markets expecting a seventh straight rate hold at 4.75%, as policymakers signal limited room for further easing after delivering 150bps of cuts since September 2024.

Indonesia remains exposed to higher energy costs as a net oil and gas importer despite recent hikes in non-subsidized fuel prices.

Inflation risks have intensified, while capital outflows persisted amid the dividend season.

Meantime, forex reserves fell to a two-year low in March as the central bank stepped up intervention.

Fiscal pressures also grew under President Prabowo’s key programs, though officials have pledged to keep the 3% deficit cap this year.



News Stream
Rupiah Remains Weak Ahead of Policy Decision
The Indonesian rupiah hovered near IDR 17,170 on Wednesday, holding above the key 17,000 level after briefly hitting a record low around 17,200 last week. Sentiment remained fragile as the U.S. dollar firmed, with haven demand rising after plans for a second round of U.S.–Iran peace talks collapsed. Bank Indonesia is set to announce its policy decision later today, with markets expecting a seventh straight rate hold at 4.75%, as policymakers signal limited room for further easing after delivering 150bps of cuts since September 2024. Indonesia remains exposed to higher energy costs as a net oil and gas importer despite recent hikes in non-subsidized fuel prices. Inflation risks have intensified, while capital outflows persisted amid the dividend season. Meantime, forex reserves fell to a two-year low in March as the central bank stepped up intervention. Fiscal pressures also grew under President Prabowo’s key programs, though officials have pledged to keep the 3% deficit cap this year.
2026-04-22
Rupiah Stays Above Key Level as BI Meeting Begins
The Indonesian rupiah traded around IDR 17,140 on Tuesday, holding above the psychological 17,000 mark since last week. Pressure persisted as the central bank kicked off its two-day policy meeting, with rates expected to remain unchanged for a seventh straight time at 4.75% following a cumulative 150bps of cuts since September 2024. Inflation risks, however, continue to build amid Middle East tensions. As a net oil and gas importer, Indonesia remains vulnerable to higher energy costs, prompting increases in non-subsidized fuel prices. Seasonal dividend repatriation continued to drive capital outflows, while sustained intervention risks further strained forex reserves, which dropped to a near two-year low in March. Fiscal concerns also weighed, although Finance Minister Purbaya Yudhi Sadewa said the debt service ratio remains manageable. Globally, the U.S. dollar index steadied after recent losses as markets assessed prospects for a longer-term peace deal between Washington and Tehran.
2026-04-21
Rupiah Holds Weak as BI Policy Meeting Nears
The Indonesian rupiah hovered near IDR 17,160 on Monday, after briefly hitting a fresh low of around IDR 17,200 in the prior session. Despite the mild rebound, the currency remained under pressure as a stronger U.S. dollar boosted demand for haven assets amid renewed U.S.–Iran tensions. Persistent capital outflows continued to weigh on the rupiah, driven by elevated oil prices, rising inflation risks, and seasonal dividend repatriation. Fiscal challenges also added to the downside, as policymakers seek to balance stability with growth. Against this backdrop, Bank Indonesia will hold a policy meeting this week, with expectations of a cautious stance after keeping rates unchanged in March for a sixth straight time, following 150bp of cuts since September 2024. Continued intervention may further strain forex reserves, which fell to a near two-year low in March. Jakarta still targets growth above 5.3% in 2026, while the IMF sees a softer 5.0% on global risks and commodity volatility.
2026-04-20