Rupiah closes at Rp18,000 per US dollar as BI intervenes

Indonesia’s rupiah ended trading on 16 October 2026 at Rp18,000 per US dollar, down 0.45 per cent, according to Refinitiv data. Bank Indonesia said it was continuing to intervene in financial markets to stabilise the currency.

The rupiah opened 0.33 per cent weaker at Rp17,980 per US dollar and reached an intraday low of Rp18,070. It recovered 70 points from that low before the close but remained weaker throughout the session.

Coordinating Minister for Economic Affairs Airlangga Hartarto attributed the currency’s decline partly to MSCI’s consultation on moving Indonesian equities from Emerging Market to Standalone Market status. The proposal has not become a final decision. Airlangga said the announcement came earlier than the expected November 2026 timing, unsettling both equities and the rupiah.

Airlangga said MSCI considered implementation of previously promised measures to be taking too long. He called for an explanation of the timetable and said progress on reforms needed to be visible to domestic and foreign investors.

Erwin Gunawan Hutapea, head of Bank Indonesia’s monetary and securities asset management department, said intervention involved offshore non-deliverable forwards, domestic spot and forward transactions, and purchases of government securities in the secondary market. He attributed pressure on the rupiah to greater global risk aversion and US dollar strength, and expected outflows from domestic portfolio assets to continue.

Erwin said Indonesia’s foreign-exchange reserves remained at US$146.3 billion at the end of September 2026. The central bank was also maintaining sufficient liquidity, managing money-market interest rates and coordinating with companies and market participants, he said.