Jakarta. Rupiah weakened for an eighth consecutive trading day on Monday as Bank Indonesia (BI) cited Middle East geopolitical tensions and oil prices above $100 per barrel as key external pressures on the currency.

The rupiah closed at Rp 17,847 per US dollar on Monday, down 0.50% from Rp 17,758 at the end of last week, according to Bloomberg data. The currency’s depreciation continued into Tuesday, trading at Rp 17,884 per dollar as of 2:59 p.m. Jakarta time, down another 0.21% from the previous close.

BI Head of Monetary and Securities Asset Management Department Erwin Gunawan Hutapea said elevated oil prices had increased global inflation risks and added pressure to the fiscal outlook. Domestic demand for foreign exchange from importers and capital outflows from domestic portfolio assets had also weighed on the rupiah.

“The rupiah’s depreciation remains influenced by concerns over geopolitical tensions in the Middle East, which have kept oil prices above $100 per barrel, increasing global inflation risks and pressure on the fiscal outlook. Exchange rate pressures have also been driven by importers’ foreign exchange needs and portfolio outflows from domestic assets,” Erwin said in a statement cited on Tuesday.

BI said it would remain active in the foreign exchange market to ensure orderly market mechanisms and keep the rupiah stable in line with its fundamental value.

Erwin said the central bank would manage interest rate structures in the money market by strengthening its pro-market monetary operations strategy. BI would also enhance exchange rate stabilization and liquidity adequacy through underlying transactions for hedging swaps, supported by incentives.

“Bank Indonesia will continue to be present in the market to ensure that market mechanisms function properly and that the rupiah’s stability is maintained in line with its fundamentals,” he said.

The central bank will also continue consistent interventions across offshore and domestic markets. These include Non-Deliverable Forward (NDF) transactions offshore, as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market. BI will also purchase government bonds (SBN) in the secondary market.

Beyond market intervention, BI is strengthening coordination with corporations and market participants to encourage foreign capital inflows. It will also optimize existing incentives and promote the diversification of foreign exchange demand through the Local Currency Transaction (LCT) scheme.

“Interventions will continue to be carried out consistently and continuously,” Erwin said.

Despite its recent losses, BI said the rupiah’s movements remained broadly in line with regional currencies. The currency was still up 0.37% quarter-to-date (QTD). Indonesia’s foreign exchange reserves also increased to $146.5 billion at the end of August 2026.

“Overall, the rupiah’s movements remain in line with those of regional currencies,” Erwin said.

Meanwhile, the Singapore dollar stood at Rp 14,003, while the Japanese yen traded at Rp 113.79. The Australian dollar was valued at Rp 12,718, while the euro stood at Rp 20,473.

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