Rupiah Falls for 4th Session Amid Dollar, Oil Pressures

2026-09-15 05:27 By Farida Husna 1 min. read

The Indonesian rupiah weakened toward IDR 17,700 per U.S.

dollar on Tuesday, extending losses for a fourth straight session as the U.S.

dollar index firmed ahead of the Fed’s policy decision later this week.

Locally, elevated oil prices heightened inflation concerns after headline figures accelerated to 3.19% in August.

As a net oil importer, Indonesia remains vulnerable to higher global energy costs, which could add pressure to both inflation and the fiscal position.

On the policy front, Bank Indonesia is set to hold its policy meeting next week after keeping its key rate unchanged for a second consecutive month in August, following a cumulative 100bp tightening since May.

Meanwhile, Suahasil Nazara was sworn in as the new finance minister, replacing Purbaya Yudhi in a surprise reshuffle, the third change in less than two years.

Suahasil pledged budget discipline, including the 3% deficit cap, as external headwinds mount from rising U.S.

Treasury yields and oil above $100 per barrel.



News Stream
Rupiah Falls for 4th Session Amid Dollar, Oil Pressures
The Indonesian rupiah weakened toward IDR 17,700 per U.S. dollar on Tuesday, extending losses for a fourth straight session as the U.S. dollar index firmed ahead of the Fed’s policy decision later this week. Locally, elevated oil prices heightened inflation concerns after headline figures accelerated to 3.19% in August. As a net oil importer, Indonesia remains vulnerable to higher global energy costs, which could add pressure to both inflation and the fiscal position. On the policy front, Bank Indonesia is set to hold its policy meeting next week after keeping its key rate unchanged for a second consecutive month in August, following a cumulative 100bp tightening since May. Meanwhile, Suahasil Nazara was sworn in as the new finance minister, replacing Purbaya Yudhi in a surprise reshuffle, the third change in less than two years. Suahasil pledged budget discipline, including the 3% deficit cap, as external headwinds mount from rising U.S. Treasury yields and oil above $100 per barrel.
2026-09-15
Rupiah Weakness Persists Amid Surging Oil Prices
The Indonesian rupiah slipped toward IDR 17,650 per U.S. dollar on Monday, weakening for a third session as the U.S. dollar index continued to firm ahead of the Fed’s upcoming policy meeting. The currency also faced pressure from a jump in oil prices, which could further stoke inflation and weigh on Indonesia’s fiscal position as a net oil importer. Inflation concerns deepened after headline figures accelerated to 3.19% in August, despite government efforts to contain food-price volatility amid El Niño's impact. Still, weakness was partly limited by policy assurances from Bank Indonesia Governor Destry Damayanti, who recently said policy stability would remain a key focus, with monetary, macroprudential and payment-system policies forming the main pillars of the central bank’s framework. BI is due to hold its next policy meeting next week after keeping its benchmark rate unchanged for a second consecutive month in August, following a cumulative 100bp rate hike since May.
2026-09-14
Rupiah Dips But Heads for Sixth Straight Weekly Gain
The Indonesian rupiah weakened past IDR 17,600 per U.S. dollar on Friday, falling for a second straight session as the U.S. dollar index held gains ahead of the latest U.S. consumer price index report later today. Locally, worries over fiscal conditions persisted as global oil prices remained above USD 100 per barrel, raising pressure on Indonesia’s budget position given its status as a net oil importer. Domestic price pressures also remained a concern even as authorities stepped up measures to curb food-price volatility after annual inflation accelerated to 3.19% in August. Still, the rupiah is on track for a sixth straight weekly rise, up around 0.1% so far, supported by an improved external position as foreign exchange reserves rose to a five-month high in August. Meanwhile, new Bank Indonesia Governor Destry Damayanti said policy stability would be her focus, with monetary, macroprudential and payment-system policies forming the main pillars of the central bank’s policy framework.
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