The rupiah came under renewed pressure on Thursday (12 November 2026). Refinitiv data cited by CNBC Indonesia show the currency opened at Rp18,180 per US dollar and weakened to Rp18,231 by 09:40 WIB, down 0.44% from the previous close. Infobanknews reported that the rupiah touched Rp18,250 per dollar at around 10:40 WIB. Bank Indonesia (BI) said it had stepped up stabilisation measures in the foreign exchange and bond markets.
Key points
- Erwin Gunawan Hutapea, Head of BI's Monetary and Securities Asset Management Department, said the pressure stems mainly from stronger expectations of a US Federal Reserve rate hike at the December 2026 FOMC meeting, possibly extending into 2027, after US inflation came in higher than expected.
- The US dollar index (DXY) rose to 102.96, its highest level since March 2025, while rising US Treasury yields prompted investors to pull funds out of emerging markets.
- On the domestic side, BI pointed to concerns over a possible MSCI downgrade of Indonesia's equity market classification, domestic economic dynamics and higher year-end demand for foreign currency.
- According to BI, the rupiah's weakness is in line with other regional currencies. Foreign exchange reserves stood at US$146.8 billion at the end of October 2026.
BI's stabilisation measures
BI is intervening in the offshore market through Non-Deliverable Forwards (NDF), in the domestic market through Domestic NDF (DNDF) and spot transactions, and is buying government securities (SBN) in the secondary market. The central bank stressed that these steps aim to keep the rupiah's movement consistent with the economy's fundamentals.
Impact on businesses
- Importers and companies with foreign-currency debt may face higher costs, so hedging strategies should be reviewed.
- For taxpayers, foreign-currency transactions are converted into rupiah using the exchange rate set by the Minister of Finance for tax purposes; exchange-rate swings also affect the recognition of foreign exchange gains and losses at year-end.
- Seasonal year-end demand for foreign currency means volatility may persist until the Fed's December decision.
To assess how exchange-rate movements affect your company's books and tax obligations, consult the Hanna Consulting team.
Sources: CNBC Indonesia · Infobanknews
