31.08.202604:40:31UTC+00Rupiah Steady as Destry Confirmed as New BI Governor

The Indonesian rupiah hovered around IDR 17,750 per U.S. dollar on Monday, stabilizing after a recent bout of weakness, as House Commission XI approved Destry Damayanti as Bank Indonesia’s next governor for the 2026–2031 term. She will succeed Perry Warjiyo, who resigned in July. Destry emphasized that closer policy coordination with the government will not undermine the central bank’s independence, underscoring that monetary stability and economic growth will remain core priorities.

On the external front, the U.S. dollar held near a two-week high after hawkish comments from Federal Reserve Chair Kevin Warsh boosted expectations for a rate hike in September. Attention is now turning to this week’s key domestic data releases, including August inflation and July trade figures. Inflation eased to a three-month low of 2.88% in July, remaining within Bank Indonesia’s target range. At the same time, June recorded a second consecutive monthly trade deficit, largely due to a spike in oil imports.

For the month, the rupiah is on course to log its first gain in six months, advancing about 1.4% so far, as sentiment toward Indonesian assets improves despite persistent external headwinds.