The exchange rate of the rupiah against the US dollar weakened and penetrated Rp 17,800 per dollar. Bank Indonesia (BI) explained that this weakening was due to concerns about geopolitical turmoil in the Middle East which pushed oil prices up sharply, as well as importers' foreign exchange needs and capital outflows from domestic asset portfolios. BI is committed to maintaining the stability of the rupiah exchange rate through various strategies, including managing market interest rates, underlying transactions for hedging swaps, and intervention through NDF and DNDF transactions. In addition, BI will continue to coordinate with corporations and market players to encourage foreign capital inflows and diversify foreign exchange demand. Indonesia's foreign exchange reserves also increased to US$ 146.5 billion at the end of August 2026.
