{
    "success": true,
    "data": {
        "id": 1992534,
        "msgid": "bank-indonesia-rupiah-weakness-driven-by-geopolitical-tension-concerns-1789985367",
        "date": "2026-09-21 15:58:22",
        "title": "Bank Indonesia: Rupiah weakness driven by geopolitical tension concerns",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "Bank Indonesia has identified geopolitical tensions in the Middle East as a primary driver behind the rupiah's depreciation, noting the impact of high oil prices on global inflation. The central bank remains committed to market intervention and monetary strategies to ensure exchange rate stability and maintain adequate liquidity.",
        "content": "<p>Bank Indonesia (BI) has stated that the weakening of the rupiah\nexchange rate continues to be influenced by concerns over geopolitical\ntensions in the Middle East, which have kept oil prices high at above\nUS$100 per barrel. This situation increases global inflation risks and\nputs pressure on the fiscal outlook.<\/p>\n<p>\u201cExchange rate pressure is also driven by the foreign exchange needs\nof importers and capital outflows from domestic asset portfolios,\u201d said\nErwin Gunawan Hutapea, Head of the Monetary Management and Securities\nAssets Department at BI, in a statement in Jakarta on Monday.<\/p>\n<p>BI stated that it will continue to be present in the market to ensure\nthat market mechanisms function properly and that the stability of the\nrupiah exchange rate is maintained in accordance with its fundamentals.\nThis will be achieved through the management of interest rate structures\nin the money market by strengthening pro-market monetary operation\nstrategies.<\/p>\n<p>Furthermore, BI is also enhancing the effectiveness of exchange rate\nstabilisation and liquidity adequacy through underlying transactions for\nhedging swaps with incentive acquisitions.<\/p>\n<p>Erwin said that interventions will continue to be carried out\nconsistently and sustainably through non-deliverable forward (NDF)\ntransactions in the offshore market, spot transactions, and domestic\nnon-deliverable forward (DNDF) in the domestic market, accompanied by\nthe purchase of Government Securities (SBN) in the secondary market.<\/p>\n<p>\u201cCoordination and communication with corporations and market\nparticipants are being carried out intensively, including to encourage\nforeign capital inflows by optimising the incentives provided, as well\nas diversifying foreign exchange demand through the Local Currency\nTransaction (LCT) scheme,\u201d said Erwin.<\/p>\n<p>In general, Erwin noted that the movement of the rupiah remains in\nline with regional currency movements, with an appreciation of 0.37 per\ncent quarter-to-date (qtd). Additionally, the foreign exchange reserve\nposition increased to the level of US$146.5 billion at the end of August\n2026.<\/p>\n<p>On Monday (21\/9) afternoon, the Jakarta Interbank Spot Dollar Rate\n(JISDOR) was recorded at the level of Rp17,813 per US dollar. This level\nweakened by 0.38 per cent compared to Rp17,745 per US dollar on Friday\n(18\/9).<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bank-indonesia-rupiah-weakness-driven-by-geopolitical-tension-concerns-1789985367",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}