Despite Global Pressure, BI Optimistic that the Rupiah Will Strengthen Again

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo estimates that the rupiah exchange rate against the United States dollar (USD) will move stably in the future with a tendency to strengthen.

According to him, the projection is supported by low inflation and the prospect of a solid national economic growth.

Perry explained that on December 31, 2025, the rupiah exchange rate was at the level of Rp16,675 per US dollar, or weakened by 3.48 percent on a point-to-point basis compared to the end of 2024.

Furthermore, until January 23, 2026, the rupiah was recorded as weakening to Rp16,815 per US dollar, or down 0.83 percent compared to the end of December 2025.

"The weakening of the exchange rate is influenced by the outflow of foreign capital due to increased uncertainty in the global financial market," he said in a press conference following the I-2026 KSSK periodic meeting, Tuesday, January 27.

In addition to external factors, Perry added that pressure on the rupiah exchange rate was also triggered by the increasing demand for foreign exchange from domestic banks and corporations, in line with ongoing economic activity.

In the future, he conveyed that Bank Indonesia reaffirmed its commitment to continue to maintain the stability of the rupiah exchange rate.

Perry added that these efforts were carried out through measured interventions in the foreign Non-Delivery Forward (NDF), Domestic Non-Delivery Forward (DNDF), and domestic spot markets, as well as strengthening the monetary operations strategy that is pro-market.

"In the future, the exchange rate is expected to be stable with a tendency to strengthen supported by attractive yields, low inflation, and the continued good prospects for Indonesia's economic growth," he said.