Indonesia Prepares for Rupiah Volatility Amid Global Market Pressures

The Indonesian rupiah is under pressure as the strengthening of the US dollar, high US Treasury yields, and rising global oil prices impact developing countries. The rupiah briefly touched Rp18,000 per US dollar at the end of September 2026 before moving back below that level. On October 2, 2026, the Bank Indonesia JISDOR reference rate was recorded in the range of Rp17,900 per US dollar.

The Ministry of Finance and Bank Indonesia are preparing a combination of fiscal and monetary policies to maintain rupiah stability. The strategy includes maintaining the attractiveness of Government Securities (SBN), strengthening foreign exchange reserves, intervening in the foreign exchange market, and maintaining monetary instruments that are attractive to investors.

Bank Indonesia continues to use various instruments to keep rupiah volatility from moving too sharply. This includes Non-Deliverable Forward (NDF) markets abroad, spot transactions, and Domestic Non-Deliverable Forward (DNDF) in the domestic market. The central bank has also adjusted the composition of interventions so that exchange rate stabilization can be carried out more efficiently.