September 17, 2025 | 08:08 pm
TEMPO.CO, Jakarta - The rupiah currency strengthened slightly by 3 points in today's closing of trading on Wednesday, September 17, 2025. The rupiah exchange rate closed at 16,437 per U.S. dollar. At the previous close of trading, the exchange rate of the rupiah against the U.S. dollar was recorded at 16,440.
"For tomorrow's trading, the rupiah's currency fluctuates but closed stronger in the range of Rp16,390 to Rp16,440," said commodities and currency analyst Ibrahim Assuaibi in his routine analysis on Wednesday.
He said that several economists predict Bank Indonesia (BI) will keep the benchmark interest rate, or BI rate, at 5 percent. This is because there is pressure on the rupiah due to domestic political turmoil after the mass protests at the end of August 2025 and the cabinet reshuffle, especially the replacement of the finance minister from Sri Mulyani to Purbaya Yudhi Sadewa. Additionally, there is uncertainty in the global market and the impact of Trump's tariff policies.
"However, unexpectedly, BI again cut the benchmark interest rate in September 2025; the BI rate dropped by 25 basis points (bps) to 4.75 percent," said Ibrahim.
Meanwhile, the deposit facility interest rate also dropped by 50 bps to 3.75 percent, and the lending facility interest rate by 25 bps to 5.5 percent. Since the beginning of the year, BI has cut the benchmark interest rate four times. The interest rates were cut by 25 bps each in January, May, and July, and August, from 6 percent in December 2024 to 5 percent currently.
"The reason for BI to cut the benchmark interest rate and credit interest rates is to help the government disburse the Rp200 trillion funds held at BI to Himbara (State-Owned Banks Association) to be channeled to companies with credit projects," said Ibrahim.
From an external perspective, Ibrahim said the strengthening of the rupiah was influenced by increasing confidence that the U.S. Federal Reserve will cut interest rates. The market projects that the Fed will cut interest rates by at least 25 basis points on Wednesday, given the growing evidence of a slowing labor market.
Ibrahim said some traders also expect a larger cut of 50 basis points. In addition to interest rate cuts, he said, investors will monitor the Fed's latest economic projections. After that, the market will consider statements from Fed Chair Jerome Powell at his press conference.
"However, the market is still not sure about the signals that the Fed will give regarding future monetary easing, especially considering the latest economic data also shows that U.S. inflation remains stagnant," said Ibrahim.
According to him, Jerome Powell has repeatedly emphasized the need for caution regarding the potential impact of higher U.S. trade tariffs on inflation. As a result, this could delay future interest rate cuts.
Editor's Choice: Prabowo Revises Indonesia's 2025 Economic Growth Target to 5.3 Percent
Click here to get the latest news updates from Tempo on Google News
Indonesia's Stock Index Closes Higher at 8,025 After BI Rate Cut
1 jam lalu
The Indonesia Composite Index (IHSG) closed up 67.48 or 0.85 percent to 8,025.18 after Bank Indonesia announced a cut in the benchmark interest rate.
Bank Indonesia Cuts Benchmark Interest Rate to 4.75%
4 jam lalu
Bank Indonesia has once again cut the benchmark interest rate, or BI rate, by 25 basis points to 4.75 percent.
Prabowo Revises Indonesia's 2025 Economic Growth Target to 5.3 Percent
5 jam lalu
In the 2025 Government Work Plan (RKP), which was previously set in Jokowi's era, the 2025 economic growth target was set at 5.3-5.6 percent.
Indonesia's Rupiah Strengthens as State Funds Flow to Banks
5 hari lalu
The closing exchange rate of the rupiah on Friday afternoon, September 12, 2025, strengthened by 87 points or 0.53 percent to Rp16,375 per US dollar.
Rupiah Today Projected to Weaken to 16,550 per US Dollar
7 hari lalu
The rupiah is projected to weaken on Wednesday, trading between Rp16,450 and Rp16,550 per US dollar as investors await US inflation data.
How Did Sri Mulyani's Replacement Shake Indonesia's Stocks and Rupiah?
8 hari lalu
The replacement of the Finance Minister from Sri Mulyani to Purbaya causes an immediate market reaction. Researchers from UII shed light on this matter.
Rupiah Today Predicted to Slide Further to 16,550 per USD After Sri Mulyani's Exit
8 hari lalu
The weakening of the rupiah today is mainly due to the negative response from the market to the replacement of Finance Minister Sri Mulyani.
Today's Top 3 News: Komnas HAM Probes 18 Witnesses in Munir Murder Investigation
8 hari lalu
Here is the list of the top 3 news on Tempo English today.
Indonesia's Rupiah Forecast to Weaken After Prabowo's Cabinet Reshuffle
9 hari lalu
Analyst Ibrahim Assuaibi predicts the rupiah exchange rate to be around Rp16,300 per U.S. dollar tomorrow.
Indonesia's Rupiah Strengthens as US Non-Farm Payroll Data Weakens
9 hari lalu
The exchange rate of Indonesia's rupiah at opening of trading on Monday in Jakarta strengthened by 48 points or 0.29 percent to Rp16,385 per US dollar
