Jakarta –
Governor of Bank Indonesia (BI) Perry Warjiyo revealed the cause of the weakening of the rupiah exchange rate against the United States (US) dollar in the last few days. The weakening of the rupiah brought Uncle Sam’s currency close to the level of IDR 17,000/US$.
Perry said the weakening of the rupiah exchange rate was influenced by high uncertainty in global financial markets. In addition, there was an increase in demand for foreign exchange by domestic corporations in line with economic activity.
“The development of the exchange rate was mainly influenced by the high uncertainty of the global financial market amidst increasing demand for domestic corporate foreign currency in line with the increase in economic activity,” said Perry in a virtual press conference on the Results of the BI Board of Governors’ Meeting, Thursday (19/2/2026).
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BI recorded that the rupiah exchange rate on February 18 2026 was IDR 16,880/US$, weakening by around 0.56% compared to the level at the end of January 2026. This value is acknowledged to be lower than the fundamental value it should be.
“BI views the rupiah exchange rate as low or undervalued compared to the fundamental conditions of the Indonesian economy, including consistent inflation which is maintained within the target of 2.5 plus or minus 1%,” said Perry.
Perry ensured that his party would continue to increase the intensity of stabilizing the rupiah exchange rate. In the future, the rupiah exchange rate is seen as stable and likely to strengthen.
“BI views the rupiah exchange rate as stable and likely to strengthen with the stabilization that BI continues to carry out, as well as being supported by the fundamental condition of the Indonesian economy which remains good, reflected in attractive yields, low inflation and the prospect of continued increasing economic growth,” added Perry.
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