In 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.
An employees shows rupiah and US dollar banknotes at a Bank Mandiri Syariah branch in Jakarta in this undated photo. (Antara/Nova Wahyudi)
Bank Indonesia (BI) has stressed the need for a shift toward a pro-stability stance after the rupiah plunged to historic lows amid global and domestic economic headwinds.In a hearing with House or Representatives Commission XI, which oversees financial affairs, 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.
“With such a global situation, monetary policy can no longer be pro-growth, it has to come back to stability, because [BI’s] mandate is to maintain stability, Pak chairman,” Perry said on Monday, addressing the commission’s head.
The rupiah has been on a downward slope since the United States and Israel launched a war against Iran in late February and by the end of April had breached its historic low of Rp 17,300 per dollar recorded during the Asian Financial Crisis in 1998.
