Rupiah Remains Undervalued Despite Market Pressure, Says Bank Indonesia

1 week ago 4

February 20, 2026 | 09:37 am

TEMPO.CO, Jakarta - Bank Indonesia (BI) assesses that the rupiah remains undervalued compared to Indonesia's fundamental economic conditions. BI Governor Perry Warjiyo stated that fundamental factors indicate the rupiah should tend to strengthen. As of Wednesday, February 18, 2026, the rupiah stood at Rp16,880 per US dollar, a 0.56 percent depreciation compared to late January 2026.

"The fundamental factors, namely inflation indicators, economic growth, yields, as well as other indicators, all show various fundamental factors, indicating that the rupiah should be more stable and tend to strengthen," Perry said during a press conference after the Board of Governors' Meeting on Thursday, February 19, 2026.

According to the BI Governor, current exchange rate pressure stems primarily from technical factors, specifically global market risk premiums.

Therefore, Perry said, BI is increasing intervention intensity to stabilize the rupiah. This intervention covers the offshore Non-Deliverable Forward (NDF) market, spot transactions, and Domestic NDF (DNDF). He hopes these efforts align the rupiah with its fundamentals.

Perry stated that stabilization efforts are also supported by Bank Indonesia Rupiah Securities (SRBI) and Government Securities (SBN) transactions to attract foreign portfolio investment.

"Alhamdulillah, for the past two months, foreign portfolio investment has continued to flow in, there has already been a net flow, and this will support the stability of the exchange rate of the rupiah while ensuring the adequacy of liquidity in the country as reflected in the double-digit growth of primary money," he said.

BI Senior Deputy Governor Destry Damayanti added that BI continues to deepen the foreign exchange market for the Yuan (CNY) rate. This involves implementing a local currency transaction (LCT) scheme for trade with China.

Destry also said that as of February 18, 2026, foreign capital inflows into SRBI and SBN reached Rp 31 trillion and Rp 530 billion respectively. "So, these inflows continue to increase, so overall year-to-date it has reached around US$ 1.6 million for inflows. And this is very helpful for the stability of the rupiah itself," she said.

BI Senior Deputy Governor Destry Damayanti added that BI continues to deepen the foreign exchange market for the Yuan or CNY exchange rate. This is done by implementing a local currency transaction (LCT) scheme in trading transactions with China.

Destry also said that based on settlement data on February 18, 2026, foreign capital inflows into SRBI and SBN reached Rp 31 trillion and Rp 530 billion respectively. "So, these inflows continue to increase, so overall year-to-date it has reached around US$ 1.6 million for inflows. And this is very helpful for the stability of the rupiah itself," she said.

Read: Bank Indonesia Holds Benchmark Rate at 4.75%

Click here to get the latest news updates from Tempo on Google News

JCI Rises on Hopes BI Will Hold Interest Rates at 4.75%

23 jam lalu

JCI Rises on Hopes BI Will Hold Interest Rates at 4.75%

The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) strengthened on Thursday, February 19, 2026.

Fact Check: Claim of Ringgit Rejected as Rupiah Strengthens Is False

3 hari lalu

Fact Check: Claim of Ringgit Rejected as Rupiah Strengthens Is False

Fact check - The value of Rupiah has tended to weaken against the Ringgit over the past year.

Fact Check: These Four Indonesian Rupiah Coins Do Not Sell for Hundreds of Millions

5 hari lalu

Fact Check: These Four Indonesian Rupiah Coins Do Not Sell for Hundreds of Millions

Several Facebook accounts claimed that four Indonesian coins are worth hundreds of millions of rupiah and asked owners to report them in the comments.

Indonesia's IHSG Closes Lower at 8,265 on Wednesday

7 hari lalu

Indonesia's IHSG Closes Lower at 8,265 on Wednesday

Despite the decline, the index remains above its February 2 low of 7,922.73, after sliding from 9,134.7 amid negative sentiment from MSCI and Moody's.

Purbaya Says Rupiah Volatility Hard to Control, Focus on Economic Growth

7 hari lalu