{
    "success": true,
    "data": {
        "id": 1783869,
        "msgid": "bank-indonesia-reveals-reasons-for-weakening-rupiah-neighbouring-countries-suffer-same-fate-1780558273",
        "date": "2026-06-04 12:15:22",
        "title": "Bank Indonesia Reveals Reasons for Weakening Rupiah, Neighbouring Countries Suffer Same Fate",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Bank Indonesia has attributed the rupiah's continued depreciation to escalating geopolitical tensions in the Middle East and strong domestic dollar demand for dividend repatriation and foreign debt payments. The central bank noted the weakness is in line with other regional currencies such as the Malaysian ringgit and Vietnamese dong. BI has intensified market intervention and is promoting local currency transaction schemes to reduce reliance on the US dollar.",
        "content": "<p>Bank Indonesia (BI) has explained that the rupiah\u2019s exchange rate is\ncontinuing its weakening trend against the United States dollar.<\/p>\n<p>The depreciation remains influenced by escalating geopolitical\ntensions in the Middle East, which are hindering peace prospects,\nconsequently keeping oil prices elevated and raising global inflation\nrisks, as well as prompting capital outflows from emerging countries,\nsaid BI Senior Deputy Governor Destry Damayanti in a written statement.\nAdditionally, domestic demand is still quite substantial, in line with\nthe pattern of dividend repatriation and foreign debt payments.<\/p>\n<p>Neighbouring countries are experiencing a similar situation. The\nringgit weakened 0.55% to MYR 4.012 per US dollar.<\/p>\n<p>Besides the rupiah and ringgit, the Vietnamese dong weakened 0.17% to\nVND 26,335 per US dollar, the Taiwan dollar fell 0.14% to TWD 31.5 per\nUS dollar, and the Chinese yuan depreciated to CNY 6.775 per US dollar,\na correction of 0.09%.<\/p>\n<p>Overall, the rupiah\u2019s depreciation remains in line with the regional\ntrend, having weakened 7.44% year-to-date, she stated.<\/p>\n<p>BI is increasing intervention to curb the rupiah\u2019s depreciation and\nensure market mechanisms function properly. At the same time, it\ncontinues to strengthen the interest rate structure of pro-market\nmonetary instruments to attract capital inflows into domestic asset\ninstruments.<\/p>\n<p>Intervention is carried out in Non-Deliverable Forward transactions\nin the offshore market, spot transactions and Domestic Non-Deliverable\nForwards in the domestic market, accompanied by purchases of government\nsecurities in the secondary market.<\/p>\n<p>Coordination and communication with corporations and other market\nparticipants continue to be conducted intensively, she explained.<\/p>\n<p>BI is also encouraging the use of local currencies in bilateral\ncooperation through the Local Currency Transaction scheme as an effort\nto reduce dependence on the US dollar and mitigate exchange rate\nvolatility risk. This cooperation has been established with China,\nJapan, Malaysia, Thailand, South Korea, and the United Arab\nEmirates.<\/p>\n<p>Diversification of trade transactions through this LCT scheme\ncontinues to increase, reaching approximately US$22.7 billion in April,\ncompared to around US$25.7 billion for the entirety of 2025.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bank-indonesia-reveals-reasons-for-weakening-rupiah-neighbouring-countries-suffer-same-fate-1780558273",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}