Bank Indonesia Strengthens Foreign Exchange Repo Instruments to Maintain Rupiah Stability
REPUBLIKA.CO.ID, JAKARTA – Bank Indonesia (BI) launched a new instrument in the form of foreign exchange (forex) repo transactions backed by Bank Indonesia Foreign Currency Securities (SVBI) and Bank Indonesia Foreign Currency Sukuk (SUVBI) on Monday (30/3/2026). This instrument is presented as an effort to strengthen BI’s monetary operations strategy amid various economic challenges faced.
“This policy is part of the strengthening of market-oriented monetary operations strategies to increase the effectiveness of monetary policy transmission as well as to accelerate the deepening of the money and foreign exchange markets (PUVA),” said the Head of the Monetary and Securities Asset Management Department, Erwin Gunawan Hutapea, in his statement on Monday (30/3/2026).
Erwin explained that in its implementation, these forex repo transactions can be participated in by primary dealers of PUVA.
“The presence of this instrument provides an additional alternative for banks in managing liquidity, particularly forex liquidity,” he stated.
Furthermore, he continued, the addition of the repo feature to BI further strengthens the characteristics of SVBI and SUVBI as high-quality liquid assets (HQLA).
“Through this strengthening, secondary market activities for SVBI and SUVBI are expected to increase further, thereby supporting the deepening of the financial markets and maintaining rupiah exchange rate stability amid ongoing global dynamics,” he explained.
It is known that amid global uncertainties due to geopolitical tensions in the Middle East, BI has introduced several initiatives. Recently, BI also announced it would strengthen forex market transaction policies to support rupiah exchange rate stability, effective from April 2026.
These initiatives are implemented through adjustments to the cash forex purchase threshold against the rupiah from US$100,000 per participant per month to US$50,000 per participant per month. Then, an increase in the DNDF/forward sale threshold from US$5 million per transaction to US$10 million per transaction. In addition, an increase in the swap buy and sell threshold from US$5 million to US$10 million per transaction.
“Bank Indonesia continues to strengthen policy coordination with the Government, including close synergy between monetary and fiscal policies to mitigate the impact of global uncertainties due to the war in the Middle East on the domestic economy, so that economic stability and growth remain well maintained,” said BI Governor Perry Warjiyo in the March 2026 Board of Governors Meeting (RDG) press conference.