Jakarta, ThedailyID — The Indonesian rupiah fell back to the Rp18,000 per US dollar level on Tuesday, September 29, 2026, as global market pressures weighed on the currency.
The rupiah traded at Rp18,003 per US dollar at 1:19 p.m. Jakarta time, according to Bloomberg data cited by CNN Indonesia. The currency weakened 25 points, or 0.14 percent, from the previous session.
Bank Indonesia said several factors were putting pressure on the rupiah. These included concerns over global inflation, fiscal risks and higher oil prices.
Oil prices rose above US$108 per barrel as markets awaited an agreement on reopening the Strait of Hormuz. The increase raised expectations that the US could keep monetary policy tighter for longer.
“The rise in oil prices above US$108 per barrel amid the lack of an agreement on reopening the Strait of Hormuz has increased expectations of further monetary tightening by the United States,” BI Head of Monetary Management and Securities Assets Erwin Gunawan Hutapea said on Tuesday, September 29.
Higher oil prices also contributed to a rise in 10-year US Treasury yields. Erwin said the yield reached 5.23 percent, its highest level since 2007.
The rupiah also faced pressure from importers’ demand for foreign currency ahead of the end of the third quarter. At the same time, portfolio funds flowed out of emerging-market assets as bond yields increased.
“The pressure on the exchange rate was also driven by importers’ foreign exchange demand ahead of the end of the third quarter, as well as portfolio outflows from emerging-market assets amid rising bond yields,” Erwin said.
Bank Indonesia said it would continue intervening in the foreign exchange market to maintain orderly trading and rupiah stability. The central bank is also using monetary operations and liquidity management to support the currency.
BI said its intervention includes offshore non-deliverable forward transactions, spot transactions and domestic DNDF transactions. The central bank also continues buying government securities in the secondary market.
Erwin said BI would maintain coordination with corporations and market participants as it responds to currency pressures.
Despite the latest decline, BI said the rupiah’s overall movement remained broadly in line with regional currencies. The currency had weakened 0.67 percent on a quarter-to-date basis, according to Erwin.
Indonesia also entered the latest period with a sizable foreign-exchange reserve buffer. BI reported that reserves rose to US$146.5 billion at the end of August, equivalent to 5.4 months of imports and above the international adequacy standard of around three months.
The rupiah’s renewed pressure comes after it had already moved close to Rp18,000 in recent sessions. Reuters reported that BI has continued intervening in currency markets as the rupiah reached its weakest level since August 4.
