Rupiah Weakening, Bank Indonesia Values Still Undervalued

JAKARTA - Bank Indonesia (BI) reported that the rupiah exchange rate on February 18, 2026 was recorded at Rp16,880 per US dollar, or weakened 0.56 percent (ptp) compared to the end of January 2026.

Governor of BI Perry Warjiyo said the weakening of the exchange rate was mainly influenced by the high uncertainty of the global financial market, amid increasing domestic corporate foreign exchange demand in line with the increase in economic activities.

"Bank Indonesia considers the rupiah exchange rate to be undervalued compared to Indonesia's economic fundamentals, including consistency with inflation control in accordance with the target of 2.5 percent plus minus 1 percent in 2026 and 2027," he said in a press conference, Thursday, February 19.

Perry added that for this, Bank Indonesia continues to increase the intensity of the rupiah exchange rate stabilization both through interventions in the foreign NDF market (off-shore) and spot and DNDF transactions in the domestic market.

In the future, he said, Bank Indonesia considers the rupiah exchange rate to be stable and tends to strengthen.

Perry explained that with the stabilization measures that continue to be carried out and supported by the fundamental conditions of the Indonesian economy, which are reflected in attractive yields, low inflation, and prospects for continued economic growth.

In addition, he added that the rupiah exchange rate stabilization policy was also strengthened with interventions in the off-shore market through NDF and interventions in the domestic market through the spot market, DNDF, and the purchase of SBN in the secondary market.

Meanwhile, the expansion of rupiah liquidity is also taken by Bank Indonesia through a reduction in the position of SRBI monetary instruments from Rp916.97 trillion at the beginning of 2025 to Rp819.50 trillion as of February 18, 2026.

He added that BI had purchased State Securities (SBN) until February 18, 2026, reaching Rp39.92 trillion, including purchases in the secondary market of Rp20.23 trillion.

Perry said that the purchase of SBN was a form of close synergy between monetary policy and fiscal policy.

"The purchase of SBN in the secondary market is carried out according to market mechanisms, measured, transparent, and consistent with monetary programs in maintaining economic stability so that it can continue to maintain the credibility of monetary policy," he said.

He added that Bank Indonesia's monetary policy continues to be strengthened to encourage higher economic growth while maintaining economic stability.