Rupiah Strengthens as BI Maintains Monetary Policy Stability

RRI.CO.ID, Jakarta - The Indonesian rupiah closed stronger on Wednesday, February 25, 2026, gaining 29 points or 0.17 percent to IDR 16,800 per USD from its previous position of IDR 16,829 per USD. The movement reflected a combination of domestic and global factors influencing exchange rate fluctuations.

Research and Development Indonesia Commodity and Derivatives Exchange (ICDX) analyst Taufan Dimas Hareva said Bank Indonesia’s (BI) consistent monetary policy has kept market sentiment conducive. “The BI reference interest rate stability still supports the rupiah fundamentals,” he said in Jakarta on Wednesday, as quoted by Antara.

He added that corporate demand for the US dollar and the dynamics of foreign capital flows in the bond and stock markets continue to affect daily volatility. According to him, short-term pressure persists as foreign-exchange demand fluctuates and global investors adjust their positions.

Externally, expectations of a tight monetary policy stance by the US Federal Reserve are driving funds back into US dollar-denominated assets, limiting the scope for strengthening emerging-market currencies.

The market also monitored US President Donald Trump’s speech on trade and fiscal policy. “If the speech is protectionist or reinforces tariff policies, risk-off sentiment could increase and put additional pressure on emerging market currencies, including the rupiah,” Taufan said. He noted that the impact is generally short-term and depends on the substance of the policy.

In his address before the US Congress, President Trump stated that almost all countries and companies wanted to maintain tariff agreements before the US Supreme Court issued its ruling on tariffs. On February 20, the court ruled that President Trump lacked the authority to impose global tariffs under the International Emergency Economic Powers Act (IEEPA).

Following the ruling, President Trump announced a 10 percent global tariff on imports. On February 21, Indonesian President Prabowo Subianto said the policy was beneficial to Indonesia and emphasized the country’s readiness to address various possibilities.

The Indonesian government confirmed that the Indonesia-US trade agreement process would continue in accordance with the agreed mechanism. Meanwhile, BI’s Jakarta Interbank Spot Dollar Rate (JISDOR) strengthened to IDR 16,813 per USD from the previous IDR 16,830 per USD. ***