Rupiah weakens to Rp17.977 per U.S. dollar on Monday morning
Markets are now awaiting Bank Indonesia's July 22 policy meeting, with the benchmark rate expected to rise to 6 percent.
Markets are now awaiting Bank Indonesia's July 22 policy meeting, with the benchmark rate expected to rise to 6 percent.
Production capacity rose to 73.8%, and business activity in Q3 is expected to stay expansionary with a 11.75% weighted net balance.
Update: land buried in mud since late November 2025 is now planted with shallots, corn and chilies to restore residents' income.
Manufacturing PMI-BI fell to 51.43, but BI still expects it to rise to 52.32 in the third quarter of 2026.
S&P sees Indonesia's fiscal pressure as temporary and still expects the budget deficit to stay below 3% of GDP.
Oil's rise to around $74-$75 a barrel and safe-haven demand for dollars added pressure on Asian currencies.
Analysts cite U.S. strikes on Iran and disruption in the Strait of Hormuz as pressure on the rupiah, despite higher reserves.
Households devoted 73 percent of income to consumption, while savings fell to 17 percent and loan installments held at 10 percent.
The revised P2SK law, enacted June 4, 2026, opens the door for Kemenkeu, BI and Danantara to become BEI shareholders.
BI said credit growth accelerated to 10.8% and net foreign assets rose 5.2%, both faster than in April.
The FLPP rate stays flat until the loan ends, even after Bank Indonesia raised the BI-Rate 25 bps to 5.75%.
Economists see tighter liquidity competition as rupiah deposit rates rose to 2.70% in May, up from 2.65% in April.
The benchmark rate has risen 100 bps in four weeks as Bank Indonesia seeks to draw capital inflows and curb pressure on the rupiah.
Perry Warjiyo still sees world growth at about 3% and inflation at 4.4% despite easing war tensions.
Why it matters: The move extends a 100-basis-point tightening push to steady the rupiah after it hit a record low this month.
Demonstrations also spread to Bandung, Makassar, Semarang, Palembang and Medan, with demands spanning MBG, BBM and the Polri law.
The program aims to speed withdrawals through RKUD and record them in SIPD RI to strengthen local government transparency.
BI still expects annual inflation to stay within 1.5%-3.5% in 2026, even as higher fuel prices lift the forecast.
The loan rebound followed April’s 9.98 percent pace, led by 21.95 percent investment lending and 13.47 percent DPK growth.
Investors are also watching MSCI and FTSE Russell reviews, with BI expected to raise rates 25 basis points to 5.75%.
The debt-to-GDP ratio stayed at 29.6 percent, while private debt remained in contraction at 0.7 percent in April 2026.
The scheme covers rupiah-renminbi trade payments for Indonesia-China commerce valued at US$154.5 billion in 2025.
Bank Mandiri joins CIPS directly, while Indonesia-China trade in 2025 hits a record US$167.49 billion.
Markets see the rate increase as drawing foreign interest, even as the dollar stays firm after stronger-than-expected U.S. PPI data.
The 2027 growth target is set at 5.8%-6.5%, with a 1.8%-2.4% deficit and an exchange rate of Rp16.800-Rp17.500 per US dollar.
Chinese visitors can now pay in Indonesia through Alipay, with WeChat potentially coming next.
KPK will recall eight witnesses and trace money flows and assets in the alleged money laundering case involving Heri Gunawan.
What's new: Orders topped $4.6 billion, letting the fund raise more than planned as Indonesia faces pressure on the rupiah.
Series: Danantara · Debut Dollar Bond Sale · 3 chapters since Jun 11New: Bank Mandiri joins CIPS directly, while 191 providers in China and 24 in Indonesia are linked for QR payments.
The rupiah touched a record low of 18,201 on June 8, while the government has promised stabilization steps this week.
What's new: final guidance tightened to 5.35% for five-year notes and 5.95% for 10-year debt ahead of pricing.
Series: Danantara · Debut Dollar Bond Sale · 3 chapters since Jun 11Why it matters: Investors are betting the Bank of Thailand will hold rates at 1% as inflation stays soft and growth remains weak.
BRI, BNI, Bank Mandiri and BSI said liquidity, capital and asset quality remain strong enough to sustain lending.
The 25-basis-point off-cycle move is the first in eight years as reserves also come under pressure from market intervention.
Earlier: Rupiah closes at Rp18.049 per dollar as RI stocks fall nearly 4%Series: Indonesian Rupiah · Exchange Rate Slide · 5 chapters since Jun 3What's new: Seoul's Kospi recovered much of Monday's 8.3% plunge, while SK Hynix jumped 6.44% as investors returned to AI shares.
Industrial estate operators say investors care more about permits, energy, zoning and infrastructure than daily currency swings.
BI said the level still covered 5.6 months of imports, despite pressure from government debt payments and rupiah intervention.
Why it matters: The fifth straight monthly drop came as Bank Indonesia spent reserves to support the currency and bond market.
Rising energy prices and capital outflows are adding pressure on Indonesia's trade balance, stocks and investor sentiment.
Earlier: Rupiah hits Rp 18.015 per dollar as DPR urges quick actionSeries: Indonesia · Rupiah Slide · 7 chapters since Jun 4The government also denied a cabinet reshuffle and pushed closer coordination among BI, Kemenkeu, OJK and DPR.
The government is preparing closer fiscal-monetary coordination to attract inflows and preserve banking liquidity.
Government cash will remain at BI with higher remuneration to preserve money market and banking liquidity, officials said.
Why it matters: The won and rupiah led regional losses as officials in South Korea, Indonesia, Japan, India and the Philippines stepped up defenses.
In January-April 2026, foreign arrivals reached 4.68 million, with Bali still the main entry point.
In Q2, foreign inflows reached Rp60.9 trillion, led by Rp99.9 trillion in SRBI, even as stocks saw outflows.
The denial comes as the rupiah crossed Rp18.000 per U.S. dollar, while the 2026 state budget still assumes Rp16.500.