Rupiah opens lower at Rp18,020 against US dollar
Bank Indonesia is monitoring capital outflows and offering hedging incentives as it seeks to draw foreign funds back into domestic assets.
Indonesia’s rupiah fell 0.11 per cent to Rp18,020 per US dollar at the opening of trading on 22 October 2026, according to Refinitiv data, extending its decline from the previous session.
The currency had ended 21 October at Rp18,000 per US dollar, also down 0.11 per cent, after Bank Indonesia kept its benchmark interest rate at 5.75 per cent. Meanwhile, the US dollar index slipped 0.06 per cent to 101.716 at 09:00 Western Indonesian Time.
Bank Indonesia Governor Destry Damayanti said the central bank was tracking capital leaving Indonesia’s financial markets following developments involving MSCI. She said pressure on the rupiah remained relatively normal and broadly consistent with conditions affecting regional currencies.
The central bank said financial-market stability was its main priority and that it was preparing targeted measures to encourage foreign investment in domestic financial assets. These include incentives for Domestic Non-Deliverable Forward (DNDF) transactions that could reduce investors’ hedging costs by up to 45 per cent.
Destry said the bank hoped repricing in government securities, alongside larger incentives, would make domestic yields more attractive relative to US dollar assets. Bank Indonesia also expects a 2 per cent reduction in reserve requirements to add around Rp190 trillion to banking liquidity.
