Rupiah Weakens Early 2026 as Global Pressures Mount, BI Steps Up Defense

JAKARTA, Investortrust.id — Bank Indonesia says the rupiah weakens in early 2026 as global financial pressures intensify, with the currency closing at Rp 16,860 per US dollar on Tuesday, Jan 13, 2026 in Jakarta, prompting the central bank to intervene to safeguard stability. The rupiah depreciates 1.04 percent year to date as external shocks raise volatility across regional currencies.

The central bank said global market moves at the start of the year were driven by rising geopolitical tensions, concerns over central bank independence in advanced economies, and uncertainty over the future policy path of the Federal Reserve. These forces coincided with higher domestic foreign exchange demand early in the year.

Bank Indonesia noted the rupiah’s performance remained broadly in line with regional peers affected by the same global sentiment. The South Korean won weakened 2.46 percent, while the Philippine peso fell 1.04 percent over the same period.

To maintain stability, the central bank continued a comprehensive stabilization policy through non deliverable forward intervention in offshore markets across Asia, Europe, and the United States. It also intervened domestically via spot transactions, domestic non deliverable forwards, and purchases of government bonds in the secondary market.

The rupiah also drew support from ongoing foreign capital inflows, particularly into Bank Indonesia Rupiah Securities and equities, which posted net inflows of Rp 11.11 trillion in January 2026. Investor confidence remained positive, reflected in Indonesia’s five year credit default swap premium holding at a low level of around 72 basis points.

External resilience stayed solid as foreign exchange reserves reached $156.5 billion at end December 2025, equivalent to 6.4 months of imports. Bank Indonesia said it would remain active in the market to ensure the rupiah moved in line with fundamentals and orderly market mechanisms.

The central bank added it would continue optimizing pro market monetary operations to strengthen policy transmission and ensure adequate liquidity. These measures aim to support sustainable economic growth while keeping inflation on target and preserving exchange rate stability.