Jakarta, Aktualita.co — The rupiah exchange rate entered Tuesday’s trading session, September 22, 2026, under pressure after closing significantly lower against the US dollar at the start of the week.
On Monday, September 21, 2026, the rupiah closed at Rp17,847 per US dollar, weakening by 89 points or approximately 0.50 percent compared to the previous close of Rp17,758 per US dollar.
Meanwhile, based on the Jakarta Interbank Spot Dollar Rate (JISDOR) of Bank Indonesia, the rupiah was recorded at Rp17,813 per US dollar, weakening from Rp17,745 on Friday, September 18, 2026.
The pressure on the rupiah comes as the market faces a combination of external and domestic sentiments. Geopolitical tensions in the Middle East, persistently high oil prices, the strengthening of the US dollar, and domestic foreign exchange demand are among the factors being monitored by market participants.
At the same time, investors are awaiting the policy direction of Bank Indonesia, which begins its Board of Governors Meeting (RDG) on Tuesday and Wednesday, September 22–23, 2026.
BI Reveals Causes of Rupiah Pressure
Head of the Monetary Management and Securities Assets Department at Bank Indonesia, Erwin Gunawan Hutapea, stated that the weakening of the rupiah is still influenced by geopolitical uncertainty in the Middle East.
This situation continues to keep global oil prices at high levels and increases concerns regarding inflation and fiscal conditions.
“The weakening of the rupiah exchange rate is still influenced by concerns over geopolitical tensions in the Middle East, which are pushing oil prices to remain high above 100 US dollars per barrel.”
Erwin noted that pressure also stems from the foreign exchange needs of importers and capital outflows from domestic asset portfolios.
Energy prices are a critical factor for the rupiah because Indonesia still relies on imports for oil and energy products. When oil prices rise, the demand for dollars to pay for imports can also increase.
Geopolitical uncertainty also tends to drive global investors toward assets considered safer, providing support for the US dollar.
US Dollar Remains Strong
In the global market, the US dollar index is hovering around the 100 level following renewed expectations for a tight monetary policy from the Federal Reserve.
Reuters reported that the dollar index was around 100.39 during Monday’s trading. The market has also increased the probability of the Fed raising interest rates again in October 2026.
The rise in US government bond yields has also made dollar-denominated assets more attractive to investors.
This condition can put pressure on emerging market currencies, including the rupiah, especially as investors reduce their holdings of domestic assets and move their funds into dollar instruments.
However, global market movements have not been entirely one-sided. Global oil prices fell on Monday amid hopes for increased supply and diplomatic developments regarding the Middle East conflict.
These changes in oil prices and geopolitical sentiment have the potential to return to the focus of the foreign exchange market during Tuesday’s trading.
Market Awaits BI Decision
Domestically, the market’s primary focus is now on Bank Indonesia.
The September BI Board of Governors Meeting (RDG) is taking place on September 22–23, 2026. The first day is used to deepen assessments of economic conditions, monetary policy, financial system stability, and payment systems. The policy decision is then determined on the second day.
At the previous RDG on August 18–19, 2026, Bank Indonesia maintained the BI-Rate at 5.75 percent, the Deposit Facility at 4.75 percent, and the Lending Facility at 6.50 percent.
At that time, BI emphasized that the policy was directed at strengthening the rupiah against the impact of global volatility, maintaining inflation within the target of 2.5±1 percent in 2026 and 2027, and continuing to support economic growth.
The market will now observe whether the latest pressure on the rupiah will influence BI’s policy choices in September.
Several analysts estimate that there is room for tightening due to the combination of rupiah pressure, energy prices, global inflation, and the policy direction of major global central banks. However, the official decision will await the results of the RDG on Wednesday, September 23.
BI Prepares Intervention
Bank Indonesia has confirmed that it remains in the market to maintain exchange rate stability.
Erwin stated that intervention is carried out through several instruments, including Non-Deliverable Forward (NDF) transactions in the offshore market, as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market.
BI may also conduct purchases of Government Securities (SBN) in the secondary market.
“Coordination and communication with corporations and market participants continue to be carried out intensively, including to encourage foreign capital inflows by optimizing the incentives that have been provided.”
BI is also encouraging the diversification of foreign exchange needs through the Local Currency Transaction (LCT) scheme so that trade and investment transactions do not rely entirely on the US dollar.
Despite experiencing pressure on Monday, BI noted that the rupiah is still up approximately 0.37 percent quarter-to-date, and its movement is considered to be in line with regional currencies.
Indonesia’s foreign exchange reserves at the end of August 2026 stood at US$146.5 billion, providing the central bank with room to maintain market stability.
Tuesday’s Rupiah to be Influenced by Various Sentiments
The movement of the rupiah on Tuesday is expected to remain sensitive to changes in global sentiment.
Market participants will monitor developments in the Middle East conflict, oil price movements, the US dollar index, and US government bond yields.
Domestically, the start of the Bank Indonesia RDG is an equally important factor.
With the BI decision scheduled for the second day of the RDG, Tuesday’s trading will likely be influenced more by investor expectations regarding the steps the central bank will take.
The market will primarily await signals regarding interest rates, rupiah stabilization strategies, and BI’s measures to maintain foreign capital inflows amid global uncertainty.
Therefore, the movement of the rupiah on Tuesday will not only reflect the strength of the US dollar but also how the market assesses the ability of domestic policy to dampen pressure from geopolitics, energy prices, and shifts in global interest rate directions.