Bank Indonesia Prepares Measures to Safeguard Rupiah Stability

Bank Indonesia is strengthening efforts to stabilise the rupiah exchange rate amid rising global financial market uncertainties. Several measures are being taken by the central bank.

“US dollar appreciation is occurring relative to almost all world currencies,” said Deputy Director of the Economic and Monetary Policy Department of Bank Indonesia, Juli Budi Winantya, during a discussion with the media in Bandung on Friday, 24 April 2026.

On Thursday, 23 April 2026 at 09:50 WIB, the rupiah briefly breached the level of 17,307 per US dollar. As of Friday afternoon, the rupiah stood at Rp 17,229, strengthening by 57 points from Thursday’s close of Rp 17,286.

According to Juli, the dollar’s strengthening is due to heavy capital flows into the United States. This is a result of rising US Treasury yields stemming from the expanding US fiscal deficit.

The US fiscal deficit is widening due to increased spending on war. Based on estimates from the Center for Strategic and International Studies (CSIS), the cost of the Iran war is estimated to have exceeded US$20 billion.

According to Juli, Bank Indonesia continues to implement policies to stabilise the rupiah exchange rate. The BI Rate is maintained at 4.75% to support efforts to preserve rupiah stability.

Interventions are also ongoing, including Non-Deliverable Forward (NDF) transactions in overseas markets as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market. BI is also expanding foreign exchange monetary operations through swap transactions.

“This is expected to reduce pressure on the rupiah,” said Juli.