Indonesian rupiah rises toward IDR 17,830, second week gains

The Indonesian rupiah edged higher to around IDR 17,830 per U.S. dollar around midday Friday, ending a three-session losing streak and heading for a second straight weekly advance.

Sentiment was lifted by President Prabowo’s Independence Day address to parliament, in which he projected GDP growth could reach 6% by year-end, citing continued investment realisation and job creation.

The government also plans to reclaim part of state-owned companies’ dividends to build a fiscal buffer and accelerate debt reduction, potentially strengthening fiscal credibility.

Focus now turns to Bank Indonesia’s policy meeting next week, its first since Perry Warjiyo stepped down last month.

Acting Governor Destry Damayanti, now the sole nominee to lead BI, is expected to provide policy continuity.

BI has raised its policy rate by 100bps since May to support the rupiah.

Globally, the dollar remained subdued as softer U.S. inflation data prompted traders to scale back bets on a Fed rate hike in September.