Bank Indonesia’s JISDOR put the rupiah at Rp18,139 per US dollar on October 27, 2026, 1.47% weaker than Rp17,877 at the end of September. Coordinating Economic Affairs Minister Airlangga Hartarto said a weaker exchange rate could make Indonesian products more price-competitive in export markets; he said the government was monitoring developments.

BI kept its policy rate at 5.75% at its October 20–21 meeting and optimized hedging incentives to attract foreign capital. The premium discount for Domestic Non-Deliverable Forwards (DNDFs) tied to external funding—including portfolio inflows, banks’ offshore borrowing and foreign direct investment—rose to 40% for six-month tenors from 25%, and to 45% for 12-month tenors from 30%.

BI also continued conventional buy-side hedging swaps, with premium discounts of 15% for three months, 20% for six months and 25% for 12 months. Initially, the facility covers US dollars and Chinese renminbi, both CNY and CNH. Local Currency Transaction (LCT) incentives were extended with Japan, South Korea, Malaysia, Singapore, Thailand, China and the United Arab Emirates. They include an additional 10% Sell Swap premium and a 10% DNDF premium reduction for international trade and investment transactions.

BI said the hedging discounts had brought in US$9.9 billion in foreign inflows from their launch in June through mid-October 2026.