Rupiah opens at Rp17,900 as central bank maintains intervention

Bank Indonesia said on 15 October 2026 that it would continue intervening to stabilise the rupiah, which opened at Rp17,900 per US dollar. Refinitiv data showed the currency weakened 0.03% from its 14 October close of Rp17,895 per US dollar.

Erwin G. Hutapea, who heads the central bank’s monetary and securities asset management department, said higher-than-expected US inflation had fuelled expectations of more aggressive Federal Reserve interest-rate policy. Uncertainty over resolving the Middle East conflict was also keeping oil above US$105 per barrel and increasing fiscal risks, he said.

In a written statement, Erwin linked those conditions to a stronger dollar and pressure on investment flows out of emerging-market assets as bond yields rose. The two-year US Treasury yield had climbed 12 basis points to 4.90%.

The central bank said the rupiah’s performance remained broadly consistent with regional currencies, with a quarter-to-date decline of 0.17%. It reported foreign-exchange reserves of US$146.3 billion at the end of September 2026.

Erwin said intervention was being conducted through offshore non-deliverable forwards, alongside spot transactions and domestic non-deliverable forwards. Bank Indonesia was also purchasing government securities in the secondary market to support financial-market stability.

The bank said it was maintaining adequate liquidity to manage money-market interest rates while continuing close coordination and communication with companies and market participants. It said its measures sought to keep markets functioning properly and currency movements aligned with economic fundamentals.