FX.co ★ Rupiah Holds Below IDR 17,700 as Forex Reserves Rise

The Indonesian rupiah held below IDR 17,700 per U.S. dollar for a third consecutive session on Monday, trading around IDR 17,650, supported by stronger external buffers and signs of fiscal discipline. Indonesia’s foreign exchange reserves climbed in August to a five-month high of USD 146.5 billion, aided by government withdrawals of external loans. At the same time, the government’s plan to narrow the 2027 fiscal deficit to 2.4% of GDP, from 2.68% this year, reinforced perceptions of tighter fiscal management.

Bank Indonesia Governor Destry Damayanti noted that domestic inflation remains contained and emphasized the need for closer coordination among the government, the central bank, and the private sector to sustain economic growth.

Externally, the U.S. dollar index was steady ahead of key U.S. inflation data due later this week, after recently rebounding on the back of strong labor market figures that strengthened expectations of a Federal Reserve rate hike in September. Market focus now shifts to upcoming Indonesian indicators, including August consumer confidence and July retail sales, scheduled for release later this week.