Synergy and coordination represent a commitment expressed by the\nGovernor of Bank Indonesia (BI) to maintain stability while\nsimultaneously driving economic growth.<\/p>\n
Bank Indonesia has stated its commitment to coordinate with the\ngovernment to improve the structure of the current account, which is\ncurrently experiencing a deficit, in order to support the stability of\nthe rupiah exchange rate. The current account balance in the second\nquarter of 2026 recorded a deficit of US$12.5 billion, or 3.3 per cent\nof Gross Domestic Product (GDP), an increase from the US$3.6 billion\ndeficit recorded in the first quarter of 2026 (1.0 per cent of GDP).<\/p>\n
\u201cSynergy is being undertaken not only within the Financial System\nStability Committee (KSSK), but also with ministries and agencies,\nparticularly regarding exchange rate stability, so that the structure of\nour Balance of Payments (BOP) or our current account can be improved,\u201d\nsaid Erwin G. Hutapea, Executive Director and Head of the Monetary\nManagement and Securities Assets Department at BI, during a media\nbriefing in Jakarta on Wednesday.<\/p>\n
According to him, improving the current account structure is expected\nto be achieved through increased exports and the management of imports,\nincluding payments related to import requirements. \u201cThis means exports\ncan increase and imports can certainly be better managed, particularly\nregarding payments related to import obligations,\u201d he added.<\/p>\n
Erwin stated that synergy and coordination are commitments previously\nconveyed by the BI Governor to maintain stability and encourage economic\ngrowth. He noted that this is crucial given that there are structural\nissues that BI cannot address alone.<\/p>\n
Regarding the management of exports and imports, for instance, he\nsaid that BI is monitoring the implementation of the new Government\nRegulation (PP) concerning Export Proceeds (DHE), including the supply\nof foreign exchange from designated banks into the domestic market.<\/p>\n
Erwin added that BI also hopes that incoming foreign capital flows\nare not merely short-term or \u2018hot money\u2019. For portfolio investment, BI\nprefers long-term or \u2018real money\u2019 investors, as well as direct\ninvestment or Foreign Direct Investment (FDI).<\/p>\n
In general, he explained that exchange rate movements cannot be\nseparated from the economic structure and fundamentals, particularly the\ncondition of the current account. \u201cWhen a country has a current account\ndeficit, it means the demand for foreign exchange is greater than its\nproduction, so the exchange rate movement will follow that situation.\nTherefore, our task is to maintain stability,\u201d Erwin said.<\/p>\n
In this context, BI is also striving to balance the balance of\npayments by encouraging foreign capital inflows into capital and\nfinancial transactions. \u201cIn addition to coordinating with relevant\nministries and agencies to improve structural conditions, Bank Indonesia\nis attempting to balance this by encouraging foreign capital inflows\ninto the capital account to ensure the balance of foreign exchange\nsupply and demand is maintained through our policies,\u201d he said.<\/p>\n
Erwin added that the effort to maintain the stability of the rupiah\nis part of BI\u2019s commitment to providing certainty to economic actors in\ntheir decision-making processes.<\/p>\n
Regarding volatility, he noted that the rupiah\u2019s movement remains\nrelatively lower compared to several peer countries. Based on BI data as\nof 29 September 2026, rupiah volatility was recorded at 7.30 per cent,\ncompared to South Korea at 15.59 per cent, the Philippines at 8.74 per\ncent, and Malaysia at 8.59 per cent.<\/p>\n
Meanwhile, for the year-to-date (YTD) period ending 29 September, the\nrupiah recorded a depreciation of 7.74 per cent compared to its position\nat the end of the previous year. As of Wednesday (30\/9) afternoon, the\nrupiah exchange rate based on the Jakarta Interbank Spot Dollar Rate\n(JISDOR) stood at Rp17,877 per US dollar.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/protecting-the-rupiah-bi-and-government-coordinate-to-improve-current-account-1790763382", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }