[REVISION HISTORY]

Indonesian Rupiah volatility and economic indicators

Updated 46 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-23 02:12 UTC → 2026-10-26 09:48 UTC · added ~~removed~~

By ~~mid-October~~ late October 2026, the Indonesian Rupiah faced ~~renewed~~ sustained downward pressure, ~~weakening toward~~ repeatedly breaching the Rp18,000 ~~mark~~ per US ~~dollar.~~ dollar threshold. On October 16, the currency ~~breached the Rp18,000 threshold,~~ reached as high as Rp18,070, driven by ~~rising US inflation and~~ global risk-off ~~sentiment. This volatility coincided with a 10.10% decline in the Indonesia Composite Index (IHSG)~~ sentiment and ~~uncertainty regarding~~ a ~~proposal by MSCI to downgrade Indonesia’s market status from ‘emerging’ to a ‘standalone market’.~~ strengthening US dollar. On October ~~20,~~ 26, the Rupiah showed signs of slight recovery, closing at Rp17,992, a 0.30% increase, which briefly brought it back above the psychological Rp18,000 level after earlier trading at approximately Rp18,006.9. Analysts attribute the ongoing pressure weakened further to ~~negative equity market sentiment fueled by foreign capital outflows, as well as~~ Rp18,135. This depreciation is largely attributed to rising geopolitical tensions in the Middle ~~East~~ East, specifically potential military escalations involving Iran, Israel, and the ~~Russia-Ukraine war,~~ United States, which have ~~kept~~ driven global oil prices ~~elevated. As of October 19, market participants are closely monitoring the~~ higher, with Brent crude surging to 116.72 US dollars per barrel. To counter volatility, Bank Indonesia (BI) ~~Board of Governors meeting to determine if a 25-basis-point interest rate increase is necessary to counter global economic uncertainty.~~ has implemented consistent interventions in the spot, Non-Deliverable Forward (NDF), and Domestic Non-Deliverable Forward (DNDF) markets. Governor Destry Damayanti has reaffirmed that the central bank ~~will continue~~ is monitoring market ~~interventions in the spot~~ movements to ensure balanced supply and Non-Deliverable Forwards (NDF) markets, including providing hedging cost incentives. While core inflation remained stable at 2.8 percent in September, volatile food prices reached 5 percent, necessitating coordination between demand. Additionally, BI ~~and the Ministry of Agriculture. To manage market volatility, the Indonesia Stock Exchange has moved~~ is promoting Local Currency Transactions (LCT) with seven partner countries to ~~exclude High Shareholding Concentration (HSC) stocks from~~ support stability. On the ~~IHSG calculation. Additionally, BI and~~ fiscal side, the Ministry of Finance ~~are~~ is coordinating with BI to ensure synergy between ~~fiscal and~~ monetary and sovereign policies. BI Senior Deputy Governor Aida S. Budiman noted that foreign exchange ~~monetary operations are being conducted while managing reserves—which~~ reserves, which stood at US$146.3 billion at the ~~previous month—to~~ end of September, are being managed to cover imports, debt payments, and capital outflow risks. Earlier in the month, the Indonesia Stock Exchange introduced new mechanisms, including the implementation of Short Selling and Intraday Short Selling (IDSS) on October 1, while also adjusting rules to improve liquidity.

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