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View all search resultsIn a House or Representatives hearing on Monday, Bank Indonesia (BI) Governor Perry Warjiyo said “we believe” the rupiah will end up averaging around Rp 16,800 per United States dollar, within the Rp 16,500 to Rp 16,900 target range set in the 2026 state budget.
As the rupiah grapples with a "perfect storm" of global dollar strength and domestic regulatory uncertainty, Indonesia faces a critical test of market confidence that may require a fresh infusion of professional leadership to resolve.
The rupiah extended its slide to 17,425 per US dollar on Tuesday, according to the Jakarta Interbank Spot Dollar Rate (JISDOR), underscoring Southeast Asia’s largest economy’s struggle to halt the currency’s decline since early this year.
Finance Minister Purbaya has pivoted toward an aggressive, pro-growth fiscal strategy that breaks from years of cautious discipline. However, using reserve cash and central bank surpluses to fund this vision may jeopardize Indonesia’s long-term institutional stability and debt credibility.
The rupiah was the worst-performing currency in the region, depreciating 0.61 percent by market close, followed by the Philippine peso and the Thai baht, which weakened by 0.6 percent and 0.55 percent, respectively.
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