Rupiah Strengthens as China Cuts Exposure to US Debt

RRI.CO.ID, Jakarta - The Indonesian rupiah strengthened slightly in early Tuesday trading, February 10, 2026, supported by reports that Beijing has advised domestic financial institutions to reduce their holdings of United States government debt.

The currency opened at IDR 16,799 per US dollar, gaining six points or 0.04 percent from its previous close of IDR 16,805. The move came as investors weighed the geopolitical implications of China’s cooling appetite for American assets against expectations of weaker domestic retail sales.

Doo Financial Futures currency analyst Lukman Leong said the rupiah’s appreciation was largely driven by a weakening US dollar following reports of China’s latest financial guidance.

“The rupiah has the potential to strengthen further against the US dollar, which has been weakened by reports that the Chinese government is advising financial institutions to reduce their US bond holdings,” Lukman said in Jakarta on Tuesday, as quoted by Antara.

He noted that China has been gradually offloading US Treasuries for years and is now encouraging both private and state-linked institutions to follow suit. The recommendation reflects growing distrust of US assets and cooling relations between the two economies.

At home, however, investors remain cautious ahead of the release of Indonesia’s retail sales data for December 2025. The figure is expected to slow to 5.5 percent from 6.3 percent in the previous month, potentially limiting the rupiah’s gains.

Based on these factors, Lukman projected that the rupiah would trade between IDR 16,750 and IDR 16,900 per US dollar. ***