Jakarta. Rupiah weakened past Rp 18,000 per US dollar on Friday as MSCI’s proposal to downgrade Indonesia’s equity market classification to standalone status rattled investor sentiment, adding pressure to an already volatile financial market.

Bloomberg data showed the rupiah opening at Rp 18,038 per dollar in the spot market at 9:05 a.m. Jakarta time, down 100 points, or 0.56%, from Thursday’s close of Rp 17,938 per dollar. The currency had already weakened 35 points, or 0.20%, in the previous session.

The sell-off followed MSCI’s announcement that it had begun consultations on a proposal to reclassify Indonesia from an emerging market to a standalone market. The move raised concerns over the country’s standing among global investors and potential implications for foreign investment flows.

The rupiah weakened even as the US dollar retreated from an 18-month high on Thursday. Investors looked past stronger-than-expected US inflation and spending data, shifting their attention to volatility in the shares of artificial intelligence data center companies.

Bank Indonesia (BI) reaffirmed its commitment to stabilizing the rupiah amid global financial market volatility, saying it would maintain a consistent presence in financial markets to ensure orderly trading and keep the currency’s movements aligned with economic fundamentals.

The central bank’s statement came amid concerns over the US inflation data for September 2026, which came in above market expectations and heightened worries that the US Federal Reserve could maintain an aggressive monetary policy stance.

BI’s Monetary and Securities Asset Management Department head Erwin G. Hutapea said the central bank was continuing to optimize its intervention instruments in a measured manner across multiple markets.

“Interventions are being carried out consistently through non-deliverable forward (NDF) transactions in offshore markets, spot and domestic non-deliverable forward (DNDF) transactions in domestic markets, as well as purchases of government bonds in the secondary market,” Erwin said in a statement in Jakarta on Thursday.

Beyond direct intervention in foreign exchange and bond markets, BI is also managing money market interest rates while ensuring adequate banking liquidity. The central bank is stepping up communication with market participants and corporations to curb speculative activity.

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