Bank Indonesia commits to strengthening policy to maintain rupiah exchange rate stability

Jakarta - Bank Indonesia Governor Perry Warjiyo has assured that the central bank will continue to strengthen various policies to maintain rupiah exchange rate stability amid Middle East conflict and worsening global conditions.

“Bank Indonesia will continue to strengthen various policies to maintain rupiah exchange rate stability from the impact of deteriorating global conditions due to Middle East conflict,” Warjiyo stated during a press conference following the Bank Indonesia Monetary Policy Board meeting held online in Jakarta on Tuesday.

As of 16 March 2026, the rupiah was recorded at Rp16,985 per US dollar, weakening 1.29 percentage points compared with end-February 2026 levels, in line with depreciation of non-US dollar currencies.

The worsening global situation due to Middle East conflict has impacted exchange rate weakness and capital outflows from emerging market countries, including Indonesia.

To maintain rupiah stability, Bank Indonesia continues to increase intervention intensity in both the offshore Non-Deliverable Forward (NDF) market and spot transactions and Domestic Non-Deliverable Forward (DNDF) in the domestic market.

Additionally, BI is optimising all monetary instruments to increase foreign capital inflows to support rupiah exchange rate stability.

“Going forward, various efforts to strengthen balance of payments performance are expected to support rupiah exchange rate stability. Bank Indonesia is confident that the rupiah exchange rate will stabilise, supported by Bank Indonesia’s commitment, attractive returns, and Indonesia’s sustained positive economic growth prospects,” Warjiyo stated.