April 21, 2026 | 06:35 pm
TEMPO.CO, Jakarta - The exchange rate of the Indonesian rupiah on Tuesday, April 21, 2026, closed at 17,142 per U.S. dollar, strengthening by 26 points compared to the previous day's closing. The rupiah strengthened ahead of the Bank Indonesia Board of Governors Meeting decision, held on April 20-21, 2026.
Citing data from Trading Economics, the rupiah traded at around Rp17,140 on Tuesday and has remained above the psychological level of 17,000 since the beginning of the month. Pressure continued as the Bank Indonesia monetary policy meeting commenced for two days.
An analysis from the University of Indonesia's Institute for Economic and Social Research (LPEM FEB UI) stated that the rupiah experienced a monthly depreciation of 0.88 percent.
External pressures increased as domestic inflation began to ease. General inflation dropped to 3.48 percent on a year-on-year basis in March 2026. This inflation rate approached the upper limit of Bank Indonesia's target range, which is 1.5 to 3.5 percent. This was accompanied by the beginning of the easing of the low base effect resulting from the previous electricity tariff discount.
However, the improvement in inflation was accompanied by mounting global uncertainty, particularly following the escalation of the U.S.-Iran conflict. This conflict has increased the risk of import inflation due to rising world energy prices and triggered volatility in global financial markets.
"This external shock has begun to impact Indonesia, as reflected in a net outflow of capital amounting to US$1.47 billion, rupiah depreciation, and a decline in foreign exchange reserves to US$148.2 billion," as outlined by the LPEM FEB UI research team in the 'Macroeconomic Analysis Series of the BI Governor's Meeting' published on Tuesday, April 21, 2026.
In the midst of this situation, LPEM FEB UI recommended that Bank Indonesia maintain the benchmark interest rate, or BI rate, at 4.75 percent. This involves prioritizing external stability and carefully monitoring inflationary pressures.
Read: IDX Speaks Out as MSCI Maintains Freeze on Indonesian Stocks
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