Bank Indonesia Ensures Foreign Exchange Availability Amid Seasonal Demand Surge

Bank Indonesia Governor Perry Warjiyo has assured that foreign exchange requirements will be fulfilled as demand rises due to seasonal factors in the period from April to May 2026. Perry stated that the surge in foreign exchange demand during that time is triggered by public needs for Umrah and Hajj pilgrimages, as well as corporations conducting dividend repatriation and foreign debt payments.

“Coincidentally, seasonally, April and May see high foreign exchange demand,” said Perry during the Financial System Stability Committee (KSSK) press conference in Jakarta on Thursday (7/5/2026).

Amid the ongoing exchange rate weakening, Perry emphasised that the central bank remains fully committed to safeguarding rupiah stability by continuing to coordinate with the government.

“Why is there rupiah weakening? All world currencies are weakening. We are ensuring that the degree of weakening is not too high by going all out,” he said.

Furthermore, he explained that the exchange rate weakening is driven by global factors, including heightened geopolitical tensions in the Middle East and rising world oil prices.

In addition, persistently high US interest rates are prompting foreign investors to withdraw funds from emerging market countries, thereby strengthening the US dollar exchange rate.

Perry stressed that the rupiah is currently undervalued compared to the state of economic fundamentals.