Bank Indonesia Claims Rupiah Weakening Aligns with Regional Trends

Bank Indonesia (BI) claims that the weakening of the rupiah exchange rate remains in line with the movements of other currencies in the region. On Thursday, 4 June 2026, the rupiah exchange rate breached the level of Rp 18,000 per US dollar.

“In general, the weakening of the rupiah is still in line with the region, having depreciated by 7.44 per cent year-to-date,” said BI Senior Deputy Governor Destry Damayanti in a written statement on Thursday, 4 June 2026. She also noted that foreign exchange reserves remained maintained at the level of US$ 146.2 billion at the end of April 2026.

According to data from Trading Economics, the rupiah’s depreciation is among the deepest in the region. The Thai baht, for instance, weakened by 3.7 per cent against the US dollar, while the Malaysian ringgit strengthened by 1.11 per cent. Meanwhile, the Singapore dollar appreciated by 0.21 per cent.

According to Destry, the exchange rate weakness is still being influenced by the escalating geopolitical tensions in the Middle East. Additionally, she mentioned that domestic demand remains significant, following patterns of dividend repatriation and foreign debt repayments.

BI stated that it will continue to be present in the market and increase the intensity of interventions to ensure that market mechanisms function properly and that the stability of the rupiah exchange rate is maintained in accordance with its fundamentals.

“Continuous intervention will be carried out consistently through Non-Deliverable Forward (NDF) transactions in the offshore market, spot transactions, and Domestic Non-Deliverable Forward (DNDF) in the domestic market, accompanied by the purchase of government securities (SBN) in the secondary market,” said Destry.