The rupiah closed at Rp18,175 per US dollar on Wednesday, 28 October 2026, a record weakest close, according to Refinitiv. The currency fell 0.17 percent on the day and surpassed the previous record of Rp18,170, set on 8 June 2026. Over the month it has lost 1.15 percent.
Bank Indonesia said the pressure reflected uncertainty over how the Middle East conflict would be resolved, higher oil prices and expectations of a US interest rate increase. Erwin Gunawan Hutapea, Head of Monetary and Securities Asset Management Department at Bank Indonesia, said conditions were keeping oil above $115 a barrel. That, he said, raised future fiscal risks.
Global and regional pressures
The central bank also pointed to risk-off sentiment and capital outflows from emerging markets. Bond yields have risen, adding to the strain. Month-end demand for foreign exchange weighed further on the currency.
Bank Indonesia said rupiah movements remain broadly in line with regional currencies. Global uncertainty continues to shape them, the bank said. Concern over a possible MSCI downgrade of Indonesia’s equity market classification has also been cited as a factor.
Central bank response
Bank Indonesia said it will stay active in the market. It will trade through NDF, DNDF and spot transactions, and buy government securities in the secondary market. The aim, it said, is to keep the exchange rate stable. Foreign exchange reserves stood at $146.3 billion at the end of September 2026.
Related: Rupiah opens slightly weaker at 18,137 per dollar · Rupiah slips to Rp18,105 as BI says it stays in market
Source: Bank Indonesia
