DENPASAR, DEWATA.NEWS – Bank Indonesia (BI) Governor Perry Warjiyo acknowledged that the rupiah has weakened close to the IDR 17,000 per US dollar level in recent days, describing the currency as undervalued compared to Indonesia’s economic fundamentals.
Speaking during a virtual press conference following the central bank’s Board of Governors Meeting on Thursday (Feb 19, 2026), Perry said the recent depreciation was largely driven by global financial market uncertainty and increased foreign exchange demand from domestic corporations.
“Exchange rate developments are mainly influenced by heightened global financial market uncertainty, alongside increased foreign exchange demand from domestic corporations in line with rising economic activity,” Perry said.
As of February 18, 2026, BI recorded the rupiah at IDR 16,880 per US dollar, marking a depreciation of approximately 0.56 percent compared to the end of January 2026.
According to Perry, the current exchange rate level is below what would be considered consistent with Indonesia’s macroeconomic fundamentals.
“Bank Indonesia views the rupiah as undervalued compared to Indonesia’s economic fundamentals, including inflation that remains within the target range of 2.5 percent plus or minus 1 percent,” he stated.
The governor emphasized that the central bank will continue intensifying currency stabilization measures. He expressed confidence that the rupiah will remain stable and may strengthen in the future.
“Bank Indonesia believes the rupiah will remain stable and tend to appreciate, supported by ongoing stabilization measures and strong economic fundamentals, reflected in attractive yields, low inflation, and improving economic growth prospects,” Perry added.
For international investors and businesses operating in Indonesia, the rupiah’s movement remains closely tied to global financial conditions and domestic economic activity.