Rupiah Steady Near IDR 17,870

2026-08-13 05:59 By Farida Husna 1 min. read

The Indonesian rupiah hovered around IDR 17,870 per U.S.

dollar on Thursday, little changed from the prior session, as the dollar index steadied ahead of July’s U.S.

PPI data for more clues on price pressures and the Fed’s policy outlook.

Locally, fiscal discipline remained in focus as the government pledged to cap the 2026 deficit below 3% of GDP, as tax receipts surged over 23% yoy in January–July, underscoring stronger revenue collection.

Meanwhile, the 2027 budget proposal, set for Friday, may sustain a consumption-driven orientation.

Political attention also turned to Bank Indonesia leadership, with President Prabowo nominating Aida Budiman as senior deputy governor and Destry Damayanti as the sole candidate to succeed Perry Warjiyo.

BI’s policy meeting next week, its first since Warjiyo’s exit, comes after 100bps of hikes in May–June to aid the rupiah.

With July inflation hitting a three-month low of 2.88%, policymakers may gain room to weigh further tightening more cautiously.



News Stream
Rupiah Steady Near IDR 17,870
The Indonesian rupiah hovered around IDR 17,870 per U.S. dollar on Thursday, little changed from the prior session, as the dollar index steadied ahead of July’s U.S. PPI data for more clues on price pressures and the Fed’s policy outlook. Locally, fiscal discipline remained in focus as the government pledged to cap the 2026 deficit below 3% of GDP, as tax receipts surged over 23% yoy in January–July, underscoring stronger revenue collection. Meanwhile, the 2027 budget proposal, set for Friday, may sustain a consumption-driven orientation. Political attention also turned to Bank Indonesia leadership, with President Prabowo nominating Aida Budiman as senior deputy governor and Destry Damayanti as the sole candidate to succeed Perry Warjiyo. BI’s policy meeting next week, its first since Warjiyo’s exit, comes after 100bps of hikes in May–June to aid the rupiah. With July inflation hitting a three-month low of 2.88%, policymakers may gain room to weigh further tightening more cautiously.
2026-08-13
Rupiah Extends Weakness Ahead of U.S. Inflation Data
The Indonesian rupiah extended its decline, hovering near IDR 17,870 per U.S. dollar on Wednesday, as the dollar index edged higher ahead of U.S. inflation data that could shape expectations for the Fed’s next policy move. Locally, weaker fundamentals weighed on sentiment, with retail sales and consumer mood staying subdued in July. Focus now turns to Bank Indonesia’s policy meeting next week, its first since Perry Warjiyo stepped down last month, with acting Governor Destry Damayanti nominated as sole candidate to lead the central bank. BI raised its policy rate by a total of 100bps in May and June to support the rupiah. Meanwhile, contained inflation should provide room for policy flexibility, with Indonesia's inflation rate hitting a three-month low of 2.88% in July, within the central bank's target band. The rupiah also found some support from hopes of policy continuity, as lawmakers are expected to approve Destry’s appointment smoothly, likely after Independence Day celebrations.
2026-08-12
Rupiah Retreats on Weak Domestic Data, BI Continuity in Focus
The Indonesian rupiah slipped back toward IDR 17,820 per U.S. dollar on Tuesday, easing from a near seven-week high and reversing gains from the prior two sessions. Pressure stemmed from soft domestic data, with retail sales declining for a third month in July and consumer confidence sliding to a 15-month low. Still, losses were cushioned by expectations of policy continuity at Bank Indonesia after acting Governor Destry Damayanti was named the sole candidate to lead the central bank. Lawmakers are set to reconvene later this week for the 2027 budget presentation ahead of Independence Day, and her approval is expected to proceed smoothly. The central bank is likely to keep its focus on rupiah stability and inflation control while supporting growth where space allows. Meanwhile, the U.S. dollar index steadied as investors weighed the Fed’s policy outlook before key inflation data, following a weaker-than-expected July jobs report.
2026-08-11