7 Steps by Bank Indonesia to Strengthen the Rupiah Exchange Rate
Bank Indonesia Governor Perry Warjiyo explained seven policy steps taken by his institution to strengthen the rupiah exchange rate. Perry stated that these seven steps have been reported and approved by President Prabowo Subianto.
The first step is to conduct interventions in the foreign Non-Deliverable Forward (NDF) market as well as in the Domestic NDF (DNDF) market domestically. “Our foreign exchange reserves are more than sufficient to carry out the stabilisation of the rupiah exchange rate,” Perry said during a press conference at the Presidential Palace in Instana, Tuesday, 5 May 2026, monitored via the Presidential Secretariat’s YouTube.
Second, BI and other members of the Financial System Stability Committee have agreed to strengthen capital inflows through Bank Indonesia Rupiah Securities (SRBI). This is done to offset outflows from Government Securities (SBN) and the stock market.
Third, Perry stated that BI will continue to purchase SBN from the secondary market. He noted that year to date, BI has purchased SBN worth Rp123.1 trillion from the secondary market. Fourth, BI and the Ministry of Finance will continuously ensure adequate liquidity in banking and the market.
Fifth, BI has tightened rules on dollar purchases without underlying, reducing the limit from US$100,000 per person per month to US$50,000 per person per month. “We are preparing to lower it further to US$25,000, so purchases of dollars above US$25,000 must use underlying,” Perry said.
Sixth, BI has permitted domestic banks that are primary dealers to sell NDF in the foreign market. According to Perry, this relaxation aims to strengthen rupiah exchange rate interventions in the offshore market.
Seventh, BI will increase supervision of banks and corporations with high dollar purchase activities. “Increased supervision of banks and corporations where we see high dollar purchase activities; we send supervisors there, coordinate with Ms Friderica Widyasari Dewi of the Financial Services Authority to ensure financial system stability is maintained,” Perry stated.
The rupiah once collapsed to the level of Rp17,424 per US dollar at the close of trading on Tuesday.