FX.co ★ Rupiah Holds Near IDR17,900 Amid Steady Reserves, Elevated Dollar

The Indonesian rupiah traded close to IDR 17,900 per U.S. dollar on Wednesday, virtually unchanged from the previous session, as September foreign exchange reserves were maintained at around USD 146.3 billion, near a five-month high. The domestic backdrop remained supportive, with Finance Minister Suahasil Nazara forecasting GDP growth above 5.5% in the second half of 2026, following a 5.45% expansion in the first half, as the government advances more targeted expenditures, improves spending efficiency, and offers tax incentives to key sectors. The World Bank also underscored the resilience of household consumption and government spending in the face of global headwinds. Bank Indonesia continued to underpin the rupiah through spot market operations, DNDFs, and offshore NDF interventions, increasingly favoring more cost-effective derivatives. Market participants now await consumer confidence and retail sales figures due later this week. Externally, the U.S. dollar index held near 102, remaining relatively elevated ahead of the release of the Federal Reserve’s latest meeting minutes and additional commentary from officials, thereby limiting the rupiah’s upside.