The Indonesian rupiah extended its slide on Thursday, trading near IDR 17,750 per U.S. dollar, as stronger U.S. economic data boosted the dollar index and tempered expectations for imminent Federal Reserve rate cuts. Domestically, sentiment remained fragile amid major protests in Jakarta, with investors wary of potential unrest reminiscent of last year’s turmoil.
Caution also prevailed ahead of next week’s August inflation release, with El Niño-related weather risks stoking concerns over higher food prices. Investors were likewise awaiting July trade data, following June’s figures that underscored pressures from global energy markets.
Some reassurance came from remarks by Destry Damayanti, the sole nominee for the Bank Indonesia governorship. Addressing parliament, she emphasized that deeper policy coordination would not compromise the central bank’s independence, and reiterated that its policy stance will remain focused on maintaining stability while supporting growth, helping reinforce confidence in policy continuity.
