FX.co ★ Rupiah Firms Further After Strong GDP Data

The Indonesian rupiah traded around IDR 18,080 per U.S. dollar on Thursday, rising for a second consecutive session as the U.S. dollar index extended its decline. Markets remained focused on the implications of Democratic gains in the U.S. midterm elections for global risk sentiment and currency flows.

Domestically, the rupiah drew support from stronger-than-expected economic data. Indonesia’s GDP growth accelerated to 5.47% year-on-year in the third quarter, surpassing forecasts on the back of resilient private consumption and robust manufacturing activity. The 2026 state budget projects growth of 5.4%, though Finance Minister Suahasil recently suggested that expansion could slightly exceed that target, reaching around 5.5%.

On the monetary side, Bank Indonesia’s two-step reduction in reserve requirements for commercial banks took effect on November 1, cutting the reserve ratio to 8% from 9%. A further reduction to 7% is scheduled for December 1. The easing is expected to inject roughly IDR 190 trillion into the banking system, bolstering credit growth while aiming to preserve rupiah stability.

Investors now look ahead to October foreign exchange reserves data, due for release on Friday, for further signals on external buffers and currency dynamics.