Business · Markets · 1 hr ago
Hashim warns rupiah could weaken if foreign investors leave Indonesian stocks
Hashim Djojohadikusumo warned the rupiah could fall sharply if foreign investors pull money from Indonesia’s stock market.
He linked that risk to MSCI’s proposal to move Indonesia from emerging-market to standalone-market status.
Hashim said concerns about unhealthy trading, including suspected share-price manipulation, were part of the issue.
A weaker rupiah could make foreign loans more expensive for Indonesia, he said.
Bank Indonesia Governor Destry Damayanti said the currency moves with economic fundamentals, market demand and supply, and investor sentiment, including developments in US interest rates.
BI says it will prioritize rupiah stability to support business activity and jobs.
It has several policy tools, and any decisions will depend on future economic data and market conditions.
Hashim Djojohadikusumo warned that the rupiah could fall to Rp20,000–Rp22,000 per US dollar if foreign investors leave Indonesia’s stock market.
He linked the risk to MSCI’s proposal to reclassify Indonesia’s market from emerging market to standalone market.
Hashim said concerns about alleged stock-price manipulation were among the issues facing the market.
Bank Indonesia Governor Destry Damayanti said the rupiah is affected by domestic and external factors and that the central bank’s priority is to maintain stability.
Destry said BI has several policy tools and that interest rates are not its only option.
- Who
- Kadin Indonesia advisory board chairman Hashim Djojohadikusumo warned of the risk. Bank Indonesia Governor Destry Damayanti responded.
- What
- Hashim said the rupiah could weaken to Rp20,000–Rp22,000 per US dollar if foreign investors leave Indonesian stocks. Destry said BI is focused on exchange-rate stability.
- When
- Hashim spoke on October 29, 2026. Destry responded on October 29 and, in another report, October 30.
- Where
- Hashim spoke at the Kadin Indonesia national leadership meeting at Hotel Borobudur in Jakarta. Destry spoke to reporters.
- Why
- Hashim cited MSCI’s proposed market reclassification and concerns about alleged unhealthy trading practices. Destry said currency movements are influenced by economic fundamentals, market demand and supply, and investor sentiment.
Hashim Djojohadikusumo
Destry Damayanti
Exchange-rate risk
Hashim Djojohadikusumo
Hashim warned the rupiah could weaken to Rp20,000–Rp22,000 per US dollar if foreign investment leaves the stock market.
Destry Damayanti
Destry said the rupiah is affected by many factors and described Indonesia’s economic fundamentals as relatively sound compared with peer economies.
Response to market pressure
Hashim Djojohadikusumo
Hashim said a weaker rupiah would make foreign debt more expensive and could harm the economy.
Destry Damayanti
Destry said BI would use its available policy tools to maintain stability; she did not say it would raise interest rates.
MSCI announced a proposal to reclassify Indonesia’s market from emerging market to standalone market.
Hashim warned at a Kadin meeting that foreign-investor exits could weaken the rupiah to Rp20,000–Rp22,000 per US dollar.
Destry said BI’s task was to maintain rupiah stability and that exchange-rate movements were affected by several factors.
Destry reiterated BI’s stability focus and said it had policy tools beyond interest rates.
- Possible exchange rate
- Rp20,000–Rp22,000 per US dollar
- MSCI proposal
- Reclassify Indonesia from emerging market to standalone market
- Hashim’s event
- Kadin Indonesia national leadership meeting, Hotel Borobudur, Jakarta
- BI governor
- Destry Damayanti
- BI policy tools
- Hedging-cost incentives, macroprudential policy and SRBI
6 sources
BI Buka Suara soal Potensi Dolar AS Tembus Rp 22.000 Imbas MSCI
Bos BI Soal Isu Rupiah Bisa Rp20.000: Kami Jaga Stabilitas!
Singgung MSCI-Saham Gorengan, Hashim Bicara Rupiah Bisa Rp21 Ribu
Gubernur BI Destry Tanggapi Pernyataan Hashim soal Rupiah Berpotensi ke Rp 22.000
What people are saying
This is a very, very serious problem because if foreign investment leaves our stock exchange, the rupiah could weaken further.
If foreign investment leaves our stock exchange, the rupiah could weaken further.
If we look at our economic fundamentals, we are actually in a relatively okay condition compared with our peer group.
Our focus is indeed on maintaining stability.