The Indonesian rupiah inched higher on Wednesday, trading around IDR 17,890 per U.S. dollar after moving within a tight range in recent sessions. Bank Indonesia continued to backstop the currency through interventions in the spot market, domestic non-deliverable forwards (DNDF), and offshore NDFs.
Despite this support, the rupiah remained under pressure from a broadly stronger U.S. dollar ahead of key U.S. inflation data due later in the day. At the same time, the International Monetary Fund cautioned that geopolitical tensions and potential disruptions to energy supplies pose risks for oil-importing economies such as Indonesia.
Even so, the IMF raised its 2026 growth forecast for Indonesia to 5.1% from 5.0%, citing policies aimed at shoring up household purchasing power and an anticipated pickup in government spending toward the end of the year.
Market volatility also persisted in the run-up to MSCI’s November review of Indonesian equities, while tighter global financial conditions continued to leave the rupiah vulnerable to shifts in foreign capital flows.
