The rupiah rebounded at Thursday's market opening in Jakarta on January 22, 2026, reversing the previous day's weakening toward Rp17,000 per US dollar. The gain was driven by market euphoria over Bank Indonesia's decision to maintain the benchmark interest rate at 4.75 percent, alongside government fiscal measures for economic recovery. Analysts forecast trading in the Rp16,900-Rp16,950 range.
After weakening to around Rp16,959 per US dollar on Wednesday amid anticipation of the BI Governing Board Meeting, the rupiah strengthened by 7 points or 0.04 percent to Rp16,929 per US dollar at Thursday's opening in Jakarta (January 22, 2026) from the prior close of Rp16,936. By 09:24 WIB, it rose further to Rp16,892, up 44 points or 0.26 percent.
Analyst Rully Nova from Bank Woori Saudara attributed the rebound to positive sentiment from BI's policy to hold the BI-Rate at 4.75 percent, with deposit facility at 3.75 percent and lending facility at 5.5 percent, following the RDG on January 20-21. "The rupiah is expected to trade today in the Rp16,900-Rp16,950 range, still buoyed by BI's steady interest rate decision," he said.
The decision supports rupiah stability amid global uncertainties, aligns with the 2026-2027 inflation target of 2.5 ±1 percent, and aids growth. BI plans to strengthen monetary transmission, macroprudential measures, and monitor potential rate cuts.
Finance Minister Purbaya Yudhi Sadewa noted the widened 2025 budget deficit to 2.92 percent as a countercyclical measure against economic slowdown, with economist Ibrahim Assuaibi highlighting positive impacts. Global sentiment also improved as US-Denmark tensions over Greenland eased, reducing tariff threats on Europe.
