Business · Markets · 13 hrs ago
Airlangga says rupiah is unlikely to reach 19,000 per US dollar
Indonesia’s economic minister, Airlangga Hartarto, said he was optimistic the rupiah would stay stronger than 19,000 per US dollar by year-end.
The rupiah closed on Wednesday at about 18,175 to 18,184 per dollar, near a record low; the two reports give slightly different closing figures.
A weaker rupiah means more rupiah are needed to buy each dollar, and analysts have warned it could fall further in November or December.
Bank Indonesia said global uncertainty is pushing up the dollar and drawing money out of emerging markets.
The pressures include uncertainty over the Middle East conflict, oil above US$115 a barrel, expectations of higher US interest rates and rising bond yields.
Domestically, concerns about a possible MSCI downgrade and higher demand for foreign currency are also weighing on the rupiah.
Airlangga said the government would keep watching the exchange rate, while analysts say uncertainty could keep pressure on the currency.
Airlangga Hartarto said he is optimistic that the rupiah will not weaken to Rp19,000 per US dollar, citing Indonesia’s macroeconomic conditions.
He made the remarks in Jakarta on Wednesday, October 28, as analysts warned the currency could face further pressure.
The rupiah closed weaker that day, with reports giving closing rates of Rp18,184 and Rp18,175 per US dollar.
Bank Indonesia said uncertainty over the Middle East conflict, a stronger US dollar and capital outflows were weighing on the rupiah.
The central bank also cited concerns about a possible downgrade of Indonesia’s stock-market classification by MSCI and higher domestic demand for foreign currency.
- Who
- Coordinating Minister for Economic Affairs Airlangga Hartarto.
- What
- He said he was optimistic the rupiah would not reach Rp19,000 per US dollar. Analysts cited in the reports warned that it could come under pressure toward that level.
- When
- Wednesday, October 28, 2026.
- Where
- Jakarta, Indonesia.
- Why
- Airlangga pointed to Indonesia’s macroeconomic conditions. Bank Indonesia cited global and domestic pressures on the rupiah.
Airlangga Hartarto
Analysts warning of further rupiah weakness
Forecast
Airlangga Hartarto
Airlangga said he was optimistic the rupiah would not reach Rp19,000 per US dollar, citing Indonesia’s macroeconomic conditions.
Analysts warning of further rupiah weakness
Analysts said the rupiah could be pressured to Rp19,000 per US dollar toward the end of 2026.
Drivers
Airlangga Hartarto
Airlangga cited Indonesia’s macroeconomic conditions.
Analysts warning of further rupiah weakness
Analysts pointed to factors including uncertainty over MSCI, capital outflows and a relatively strong US dollar.
CNBC Indonesia reported that the rupiah’s previous weakest closing record was Rp18,170 per US dollar.
Airlangga said he was optimistic the rupiah would not reach Rp19,000 per US dollar.
The rupiah closed weaker; the reported rate was Rp18,184 per US dollar in Tempo EN and CNN Indonesia, and Rp18,175 in CNBC Indonesia.
- Airlangga Hartarto
- Coordinating Minister for Economic Affairs
- Date of remarks
- October 28, 2026
- Tempo EN and CNN Indonesia closing rate
- Rp18,184 per US dollar
- CNBC Indonesia closing rate
- Rp18,175 per US dollar
- Oil price cited by BI
- Above US$115 per barrel
- Foreign exchange reserves
- US$146.3 billion at the end of September 2026
3 sources
What people are saying
Yes, we will see, but we are more optimistic [that the rupiah will not break Rp19,000 per US dollar]. We will see later, but we are optimistic about macroeconomic conditions,
This situation keeps global oil prices high above US$115 per barrel and increases future fiscal risks. Expectations of a US interest rate hike are also increasing,
The rupiah closed weaker against the US dollar amid risk-off sentiment and continued net foreign selling. The US dollar index, which continues to rise ahead of the FOMC, also pressured the rupiah,