Bank Indonesia Governor Opens Up on Rupiah Near Rp17,000 Exchange Rate, Takes Policy Action

Bank Indonesia (BI) has revealed that deteriorating global conditions have impacted currency valuations across emerging markets, including Indonesia. The rupiah has weakened to Rp16,985 per US dollar, representing a depreciation of 1.9% as of 16 March 2026, according to BI data.

Bank Indonesia Governor Perry Warjiyo has emphasised that BI will continue to safeguard rupiah stability. The central bank is continuously increasing the intensity of its currency interventions across both the offshore non-deliverable forward (NDF) market and onshore spot and domestic NDF transactions.

“BI is confident the rupiah will remain stable going forward,” said Perry in the release of BI’s March 2026 Monetary Policy Review on Tuesday (17 March 2026).

Additionally, Bank Indonesia is optimising all monetary instruments to increase foreign capital inflows to support rupiah stability. Going forward, various efforts to strengthen balance of payments performance are expected to support rupiah exchange rate stability.

Bank Indonesia is confident that rupiah stability will be maintained, supported by the central bank’s commitment, attractive interest rate yields, and Indonesia’s continued solid economic growth prospects.

Based on Refinitiv data, the rupiah opened in positive territory on the trading day, strengthening by 0.12% to Rp16,965 per US dollar. This reversal followed the previous trading session, when the rupiah closed down 0.30% at Rp16,985 per US dollar. Nevertheless, Indonesian banks have been observed quoting the US dollar at around Rp17,000, with some rates reaching as high as Rp17,265 per US dollar.