January 21, 2026 | 09:19 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Perry Warjiyo explained the factors causing the rupiah to weaken further and approach Rp17,000 per U.S. dollar. According to Perry, several domestic factors have put pressure on the rupiah, including market perception.
Perry said that market perception of the nomination process for Deputy Governor of BI also adds pressure to the rupiah. "Market perception of the fiscal conditions and also the nomination process of the Deputy Governor, as we emphasized earlier that the nomination process is in accordance with the law and certainly does not affect the implementation of Bank Indonesia's tasks and authorities which remain professional and have strong governance," said Perry in a press conference following the Board of Governors Meeting on Wednesday, January 21, 2026.
The nomination process for the Deputy Governor of BI has attracted attention after President Prabowo Subianto's nephew and Deputy Finance Minister Thomas Djiwandono entered the list of candidates. Two other candidates are Head of the BI Payment System Policy Department Dicky Kartikayono and Head of the BI Macroprudential Policy Department Solikin M. Juhro.
In addition to market perception, Perry also mentioned other domestic factors, namely the outflow of foreign capital from the domestic market. BI noted that as of January 19, 2026, the outflow of foreign capital reached US$1.6 billion. Perry said the outflow of foreign capital was influenced by the significant foreign exchange requirements of several corporations, including Pertamina, PLN, and Danantara.
Perry also mentioned several global factors influencing the rupiah's weakening, such as geopolitical conditions, U.S. tariff policies, and the high U.S. Treasury yield. "In addition, there are other conditions that have caused the dollar to strengthen and a flow of capital to go out from emerging markets to developed countries, including the United States," he said.
Pressure on the rupiah that has been occurring since the end of 2025 has increased at the beginning of 2026. In trading on Wednesday, January 21, 2026, the rupiah closed at Rp16,936 per U.S. dollar.
Economist from the Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) Teuku Riefky assessed that the nomination of Thomas Djiwandono will have an impact on the pressure experienced by the rupiah. He also said that it's only a matter of time before the rupiah breaks through the psychological barrier of Rp17,000 per U.S. dollar.
According to Riefky, this is a bad precedent, because Indonesia is currently not in a crisis, but all economic indicators are worsening. "This is what worries me. It may be that the policy-making process is causing investors to not see us as a healthy economy," he said at the Centre for Strategic and International Studies office in Jakarta on Tuesday, January 20, 2026.
Read: Bank Indonesia Holds Interest Rate at 4.75% as Rupiah Tumbles
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