Business · Markets · 1 hr ago
Economist sees rupiah averaging Rp17,780 per dollar in 2027
Bank Danamon economist Irman Faiz expects the rupiah to average Rp17,780 per US dollar in 2027.
He says the currency could still face pressure early in the year, possibly reaching Rp18,000 per dollar.
Global uncertainty could weigh on investment decisions and keep investors cautious in the first quarter.
Faiz expects sentiment toward Indonesia’s financial markets to improve, which could bring foreign investment back and support the rupiah.
A return by foreign investors could help the currency strengthen after early-year turbulence eases.
Indonesia’s current-account deficit is forecast to widen to 1.6% of economic output in 2027, indicating continued demand for dollars, but Faiz says market sentiment is the bigger influence on the rupiah.
The outlook depends on whether market confidence improves and investors return to Indonesian assets.
Bank Danamon chief economist Irman Faiz forecasts the rupiah will average Rp17,780 per US dollar in 2027.
He expects the currency to face pressure early in the year and possibly reach Rp18,000 per dollar in the first quarter.
Faiz says improved sentiment, especially from external factors, could encourage foreign investment to return and support the rupiah.
He expects pressure to ease if uncertainty passes and investors see opportunities in Indonesia’s economic growth.
He forecasts Indonesia’s current-account deficit at 1.6% of economic output in 2027.
- Who
- Irman Faiz, chief economist at Bank Danamon.
- What
- He forecasts the rupiah will average Rp17,780 per US dollar in 2027, with possible pressure early in the year.
- When
- The forecast was reported on November 6, 2026. Faiz spoke at a briefing on November 5.
- Where
- At a Bank Indonesia media briefing in Sabang, Aceh.
- Why
- Faiz expects improving market sentiment to support foreign investment and the rupiah, though uncertainty could cause early-year pressure.
This story does not have two clearly opposing sides.
Faiz gave his forecast at a Bank Indonesia media briefing in Sabang, Aceh.
Faiz said the rupiah could return to Rp18,000 per dollar amid uncertainty.
Faiz expects the rupiah to improve if it gets through the turbulence.
Faiz forecasts an average exchange rate of Rp17,780 per dollar and a current-account deficit of 1.6%.
- Forecast average exchange rate
- Rp17,780 per US dollar in 2027
- Possible first-quarter level
- Rp18,000 per US dollar
- Forecast current-account deficit
- 1.6% in 2027
- Forecast current-account deficit
- 1.5% in 2026
- Briefing location
- Sabang, Aceh
What people are saying
Next year we see this sentiment improving.
There is potential for it to return to Rp18,000 in the first quarter, but if we can get through the turbulence in the second quarter, then it will improve in the second quarter.
The need for dollars is relatively high, but a 1.6% deficit because of the economy is actually much smaller than 3.3% or 4.5%, which was our deficit in 2013-2014 before Covid.