{
    "success": true,
    "data": {
        "id": 2053729,
        "msgid": "bi-prepares-measures-to-stabilise-rupiah-amid-msci-fallout-1792853411",
        "date": "2026-10-24 04:11:52",
        "title": "BI prepares measures to stabilise rupiah amid MSCI fallout",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Finance",
        "summary": "Bank Indonesia says rupiah volatility remains manageable after MSCI proposed reclassifying Indonesia\u2019s capital market, despite foreign outflows from equities, government bonds and BI securities. The central bank is ready to intervene and has increased hedging incentives to encourage foreign inflows and support exchange-rate stability.",
        "content": "<p>BI Prepares Measures to Stabilize Rupiah Amid MSCI Fallout<\/p>\n<ul>\n<li><p>24 Okt 2026 03:42 WIB<\/p><\/li>\n<li><p>Voice of Indonesia<\/p><\/li>\n<\/ul>\n<p>Poin Utama<\/p>\n<ul>\n<li><p>Bank Indonesia prepares measures to stabilize the rupiah after\nMSCI\u2019s market reclassification proposal.<\/p><\/li>\n<li><p>Higher hedging incentives aim to attract foreign capital and curb\nexchange-rate volatility.<\/p><\/li>\n<\/ul>\n<p>RRI.CO.ID, Jakarta - Bank Indonesia (BI) is preparing measures to\nstabilize the rupiah amid financial market pressures after Morgan\nStanley Capital International (MSCI) proposed reclassifying Indonesia\u2019s\ncapital market.<\/p>\n<p>The central bank said exchange-rate volatility remains manageable\ndespite foreign capital outflows from equities and fixed-income\ninstruments.<\/p>\n<p>Head of BI\u2019s Monetary and Securities Asset Management Department,\nErwin Gunawan Hutapea, said market participants have gradually begun\ndigesting the impact of MSCI\u2019s announcement.<\/p>\n<p>\u201cIt briefly weakened to above IDR 18,000 per US dollar, but not by\nmuch. We can still manage it well. Hopefully, the shock is gradually\nbeing digested by market participants,\u201d Erwin said in Jakarta on Friday,\nOct.\u00a023, 2026, as quoted by Antara.<\/p>\n<p>MSCI announced the proposed reclassification on Oct.\u00a015. A day later,\nthe Jakarta Composite Index (JCI) fell 11.57 percent, while the Jakarta\nInterbank Spot Dollar Rate (JISDOR) weakened to IDR 18,052 per US\ndollar.<\/p>\n<p>Erwin confirmed that foreign capital outflows occurred in the stock\nmarket, government bonds, and Bank Indonesia Rupiah Securities (SRBI),\nalthough he did not disclose the value of the outflows.<\/p>\n<p>To respond to market conditions, BI said rupiah liquidity remains\nsufficient to support activity in the domestic financial market. The\ncentral bank also stands ready to intervene if capital outflows spill\nover into the foreign-exchange market and trigger exchange-rate\nvolatility beyond acceptable levels.<\/p>\n<p>During its October Board of Governors Meeting, BI maintained the\nbenchmark BI-Rate at 5.75 percent and the lending facility rate at 6.5\npercent. However, the deposit facility rate was raised by 25 basis\npoints to 5 percent.<\/p>\n<p>BI also strengthened incentives for Domestic Non-Deliverable Forward\n(DNDF) hedging instruments to attract foreign capital inflows and\nsupport rupiah stability. Under the revised policy, hedging premium\nreductions were increased to 40 percent for six-month tenors from 25\npercent previously, and to 45 percent for 12-month tenors from 30\npercent.<\/p>\n<p>The incentives apply to foreign funding transactions, including\nportfolio investment inflows, overseas borrowing by banks, and foreign\ndirect investment.<\/p>\n<p>Earlier, BI Governor Destry Damayanti said the central bank continues\nto monitor the risk of foreign capital outflows following MSCI\u2019s\nannouncement. According to Destry, BI\u2019s assessment shows that pressure\non the rupiah remains relatively normal, despite broader challenges\nfacing regional financial markets.<\/p>\n<p>\u201cWe have been holding intensive discussions over the past two days on\nhow to respond to this situation,\u201d she said. ***<\/p>\n<p>News Recomendation<\/p>\n<p>Memuat berita terbaru\u2026..<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bi-prepares-measures-to-stabilise-rupiah-amid-msci-fallout-1792853411",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}