Jakarta (ANTARA) - Bank Indonesia (BI) Governor Perry Warjiyo has identified five macroeconomic and policy drivers expected to strengthen the rupiah exchange rate to a range of Rp16,800 to Rp17,500 per US dollar in 2027.
Speaking before the House of Representatives (DPR RI) Budget Committee in Jakarta on Tuesday, he revealed that this projected range has been officially incorporated into the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for Fiscal Year 2027.
"There are five main factors underlying why the rupiah in 2027 will strengthen to around Rp16,800 to Rp17,500,” he remarked.
The governor outlined the first factor as an improving global economy, with growth projected to rise to 3.1 percent. He expressed optimism that easing global geopolitical tensions would spark capital inflows into emerging markets, including Indonesia.
Secondly, Indonesia's solid economic fundamentals will continue to anchor the currency. Perry pointed to high economic growth, low inflation, a healthy current account deficit, attractive yields and more than sufficient foreign exchange reserves.
The third factor is the enhanced governance of natural resource commodity exports, specifically through the strategic role of PT Danantara Sumber Daya Indonesia (DSI). The entity is expected to optimize foreign exchange proceeds from exports and boost state revenues.
"This will support not only the financing for economic growth but also increase our foreign exchange reserves to strengthen the rupiah," Perry explained.
Fourth, he reaffirmed BI's firm commitment to defending the currency through direct market interventions and a mix of monetary policies.
Lastly, he highlighted the close coordination between fiscal and monetary authorities on keeping Indonesian instruments—such as Bank Indonesia Rupiah Securities (SRBI) and Government Securities (SBN)—highly lucrative for foreign portfolio investors, while preserving adequate liquidity in the domestic banking sector.
"With these five factors, God willing, the rupiah will strengthen to around Rp16,800 to Rp17,500 per US dollar," he added.
During his presentation, the central bank chief also shared the government’s optimistic view on economic growth, forecasting a stronger performance for 2027.
"Our projected range for economic growth in 2027 is 5.1 percent to 5.9 percent, and we believe it will lean heavily toward the upper limit," Perry stated.
Meanwhile, inflation in 2027 is expected to remain well-controlled within the target of 2.5 percent, plus or minus 1 percent.
He credited this stability to the ongoing synergy between the central government, regional governments and BI through the Inflation Control Teams (TPIP/TPID).
Related news: Bank Indonesia raises rate to defend rupiah
Translator: Rizka Khaerunnisa, Yashinta Difa Editor: M Razi Rahman Copyright © ANTARA 2026
Read the full article at Antara News →
ID