Indonesian rupiah holds near IDR 17,870 per dollar
The rupiah hovered around IDR 17,870 per U.S. dollar on Thursday, little changed from the prior session, as the dollar index steadied ahead of July U.S. PPI and Indonesia’s BI leadership update.
The Indonesian rupiah hovered around IDR 17,870 per U.S. dollar on Thursday, little changed from the prior session, as the dollar index steadied ahead of July’s U.S.
PPI data for more clues on price pressures and the Fed’s policy outlook.
Locally, fiscal discipline remained in focus as the government pledged to cap the 2026 deficit below 3% of GDP, as tax receipts surged over 23% yoy in January—July, underscoring stronger revenue collection.
Meanwhile, the 2027 budget proposal, set for Friday, may sustain a consumption-driven orientation.
Political attention also turned to Bank Indonesia leadership, with President Prabowo nominating Aida Budiman as senior deputy governor and Destry Damayanti as the sole candidate to succeed Perry Warjiyo.
BI’s policy meeting next week, its first since Warjiyo’s exit, comes after 100bps of hikes in May—June to aid the rupiah.
With July inflation hitting a three-month low of 2.88%, policymakers may gain room to weigh further tightening more cautiously.