Bank Indonesia Takes Action as Rupiah Depreciates; Direct Market Intervention Implemented

Bank Indonesia (BI) has responded to the weakening rupiah following heightened concerns over global inflationary pressures and fiscal risks. A series of policy measures have been launched to address the situation.

As of 0.95 WIB, the rupiah had depreciated by 0.19% to a position of Rp18,000/US$, according to Refinitiv data.

“Bank Indonesia continues to be present in the market to ensure that market mechanisms function properly and that the stability of the Rupiah exchange rate is maintained in accordance with its fundamentals,” stated Erwin Gunawan Hutapea, Head of the Monetary Management and Securities Asset Department of Bank Indonesia, in a written statement on Tuesday (29/09/2026).

Erwin explained that the central bank will manage interest rate structures in the money market by strengthening pro-market monetary operation strategies. BI is increasing incentives for swap instruments and Domestic Non-Deliverable Forward (DNDF) hedging to BI for the purpose of foreign funding.

In addition, intervention will be carried out consistently and continuously through Non-Deliverable Forward (NDF) transactions in the offshore market, spot transactions, and DNDF in the domestic market, accompanied by the purchase of Government Securities (SBN) in the secondary market.

“Intensive coordination and communication with corporations and market participants are being continuously maintained,” he emphasised.

Nevertheless, the movement of the rupiah remains in line with regional currency trends, with a limited depreciation of 0.67% quarter-to-date (qtd). Foreign exchange reserves were recorded to have increased to the level of USD 146.5 billion at the end of August 2026.