BI meets as rupiah comes under pressure

Bank Indonesia convened its September 2026 Rapat Dewan Gubernur over 22–23 September, with the policy decision scheduled to be announced on 23 September. The meeting focused on the benchmark BI Rate, which stood at 5.75% going into the discussions. Market participants closely followed the two-day gathering given recent financial-market moves and pressure on the rupiah.

Ahead of the decision, attention centred on whether policymakers would maintain their current policy stance or adjust interest rates in light of external conditions. The timing and structure of the meeting underlined the importance of the BI Rate as the key instrument guiding domestic monetary conditions and influencing capital flows.

Surveys of economists and financial institutions before the meeting indicated a clear bias toward keeping the BI Rate unchanged. In one poll cited in coverage, 8 of 11 institutions expected the central bank to hold the rate at 5.75%. This expectation reflected a view that policymakers might prioritise stability while monitoring the impact of global and domestic factors on inflation and growth.

The consensus for an unchanged rate framed how financial markets interpreted incoming information ahead of the 23 September decision. Any move away from the widely anticipated hold would have been seen as a significant signal about the central bank’s assessment of risks and its policy priorities.

On 22 September 2026, the rupiah traded under pressure against the U.S. dollar as markets awaited the outcome of the policy meeting. Published quotations showed the currency closing at about Rp17,850 per dollar, with opening and intraday levels reported near Rp17,887–Rp17,896. Other reported prints placed the exchange rate around Rp17,868–Rp17,879 during the session.

These mid-to-high Rp17,800s levels highlighted the rupiah’s sensitivity to evolving global conditions and to expectations for domestic monetary policy. Currency movements on the day underscored why the upcoming policy announcement and any supporting measures were central to investor focus.

In the run-up to the decision, Bank Indonesia signalled that it stood ready to act to ensure orderly functioning of the foreign-exchange market. Officials indicated the central bank could deploy several intervention tools if needed, targeting both onshore and offshore markets. These measures were presented as options to address excessive volatility rather than as a substitute for interest-rate decisions.

The toolkit highlighted included offshore and domestic non-deliverable forwards, spot FX transactions and secondary-market bond purchases. Together, these instruments give the central bank flexibility to influence liquidity and currency conditions while monitoring the broader impact on financial markets and the real economy.