Bank Indonesia's Stabilisation Policy Strengthens Rupiah Exchange Rate
Bank Indonesia (BI) Governor Perry Warjiyo stated that the rupiah exchange rate against the US dollar has successfully strengthened, supported by BI’s stabilisation policy response. The rupiah exchange rate against the US dollar on Wednesday (17/6) was recorded at Rp17,730 per US dollar, strengthening by 0.76% (point-to-point) compared to the level at the end of May 2026.
“This development was influenced by Bank Indonesia’s strengthening of exchange rate stabilisation measures in response to the impact of high global uncertainty and large corporate foreign exchange demand domestically for economic activities,” Perry said during a press conference for the BI Board of Governors Meeting held online on Thursday (18/6).
In this regard, Perry continued, the intensity of foreign exchange intervention was increased, both through intervention in the offshore Non-Deliverable Forward (NDF) market and through spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market. Additionally, Perry revealed that BI also raised the interest rate on its Rupiah Securities (SRBI) to attract foreign portfolio investment inflows and strengthen rupiah exchange rate stability. The outstanding SRBI position as of 15 June 2026 was recorded at Rp1,021.13 trillion, with non-resident holdings increasing to Rp238.09 trillion (23.32% of total outstanding), thereby supporting rupiah exchange rate stability.
BI, he added, also provided an incentive in the form of a 10% reduction in the hedging swap rate for foreign investors to further enhance the attractiveness of foreign investor inflows and compensate for obligations previously borne by investors. Furthermore, BI continues to expand its foreign exchange monetary operation instruments with spot and swap instruments in offshore Chinese Renminbi (CNH) against the rupiah, in line with the increasingly widespread use of local currency transactions (LCT) for settling trade and investment transactions.
“Going forward, Bank Indonesia believes the rupiah exchange rate will be stable and tend to strengthen, supported by Bank Indonesia’s commitment, attractive yields, and Indonesia’s solid economic growth prospects,” he concluded.