Rupiah Nears 17,000 per US Dollar, Bank Indonesia Speaks Out

23 hours ago 7

January 14, 2026 | 11:54 am

Logo or illustration of Bank Indonesia. TEMPO/Imam Sukamto

TEMPO.CO, Jakarta - The exchange rate of the rupiah in the trading session on Tuesday, January 13, 2026, weakened by 0.13 percent to Rp16,877 per US dollar. Bank Indonesia (BI) explained the causes of the recent depreciation of the rupiah.

The Head of Monetary Management and Securities Asset Department of BI, Erwin G. Hutapea, stated that the movements of the currencies of various countries, including the rupiah, are influenced by global conditions. "The global currency movements at the beginning of 2026, including Indonesia, are largely influenced by the increasing pressure in the world's financial markets," he said in an official statement on Wednesday, January 14, 2026.

Several factors affecting the depreciation of the rupiah include increasing geopolitical tensions and concerns about the independence of central banks in several advanced countries. The uncertainty about the monetary policy direction of the US Federal Reserve, The Fed, amidst the increasing domestic foreign exchange needs at the beginning of the year.

According to Erwin, these conditions have led to the depreciation of the rupiah, which closed at the level of 16,860 per US dollar on January 13, 2026. This value depreciated by 1.04 percent since the beginning of the year or year to date.

Nevertheless, this depreciation is considered reasonable as it is in line with the trends of other regional currencies that are also affected by global sentiment. These include the weakening of the South Korean won by 2.46 percent and the Philippine peso by 1.04 percent.

BI claims that the stability of the rupiah is maintained thanks to continuous interventions by the central bank in the domestic and global markets, as well as foreign capital inflows amounting to Rp11.11 trillion in January 2026. Investor confidence remains high with low risk (CDS) at the level of 72 bps.

In addition, there are foreign exchange reserves of US$156.5 billion as a buffer against global turbulence. "Bank Indonesia will continue to be in the market to ensure that the exchange rate of the Rupiah moves in line with its fundamental value and a healthy market mechanism," said Erwin.

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