Bamsoet Urges Measured Action to Protect the Rupiah

Presidential Advisory Council (Wantimpres) member Bambang Soesatyo has called on stakeholders to work together to maintain the rupiah’s stability. Recent pressure on the currency should be addressed with measured responses to avoid fuelling sentiment that could undermine people’s purchasing power.

“We must protect the rupiah together with realistic optimism. We have sound economic foundations, foreign-exchange reserves and adequate policy instruments. The most important thing now is to strengthen coordination and provide certainty to the market,” Bamsoet said in a statement on Thursday (29 October 2026).

The 15th Speaker of the People’s Consultative Assembly (MPR) said currency markets had recently been affected by a stronger US dollar, global energy prices, international capital flows and companies’ foreign-currency needs ahead of year-end. The rupiah and the Jakarta Composite Index (IHSG) also remain volatile.

“Market projections, including the possibility of the rupiah weakening to a certain level, should be treated as an early warning, not a certainty. These warning signs give the government and monetary authorities an opportunity to prepare anticipatory measures early,” he said.

Bamsoet said foreign-exchange reserves must be managed prudently and market intervention was needed to maintain stability and prevent excessive volatility. Such measures, however, should be accompanied by policies that sustainably strengthen the supply of US dollars.

“Foreign-exchange reserves are an important bulwark. But that bulwark will be more effective if supported by healthy exports, well-managed export proceeds, continued investment inflows and sustained market confidence,” he said.

Bamsoet called for concrete steps, including stronger coordination among relevant parties, better management of export proceeds and faster downstream processing so that dollar earnings come from value-added domestic production. He added that the foreign-currency needs of large companies should be managed properly.

“Bank Indonesia has independence and sufficient instruments to maintain rupiah stability. Interest-rate policy, measured intervention, strengthening the domestic foreign-exchange market, and fiscal and monetary coordination should be brought together in a mutually reinforcing approach,” he said.

Bamsoet also urged the public and businesses not to overreact to exchange-rate movements. The government should provide open and consistent information, while businesses should be encouraged to use more locally sourced materials, raise productivity and hedge against currency risks prudently.

“The market needs certainty, the public needs calm, and businesses need clear direction. With responsive policies and cooperation across all sections of the nation, the rupiah can remain stable and the national economy can continue to grow strongly, inclusively and sustainably,” Bamsoet said.