Before Prabowo, Purbaya and BI Chief Agree to Keep Dollars from Leaving Indonesia

The government, alongside Bank Indonesia (BI), is implementing strategic policies to safeguard rupiah stability and secure US dollar needs in the country.

This policy was reported to President Prabowo Subianto during a special meeting at the State Palace by Coordinating Minister for the Economy Airlangga Hartarto, Finance Minister Purbaya Yudhi Sadewa, Bank Indonesia Governor, as well as OJK Executive Director Friderica Widyasari and LPS Executive Director Anggito Abimanyu yesterday, Tuesday (5/5/2026).

In a press conference following the meeting, Airlangga revealed that President Prabowo is concerned about the capital outflow that has occurred recently. This outflow of foreign capital, he continued, is caused by market sentiment factors in Indonesia’s capital market and SBN, but neutralised by Bank Indonesia Rupiah Securities (SRBI).

“And it was agreed and reported to the President, an agreement of cooperation between BI and the Finance Minister so that going forward, this can be maintained regarding capital outflow,” said Airlangga.

BI Governor Perry Warjiyo also outlined seven steps that the central bank will take to curb capital outflow while safeguarding the rupiah.

First, BI continues to intervene in the foreign exchange market, both domestically through spot and domestic delivery transactions, and abroad through non-delivery forward (NDF) instruments. Interventions are conducted in several global financial centres such as Hong Kong, Singapore, London, and New York.

“We will continue to carry out spot and domestic delivery interventions domestically and also non-delivery forward in foreign markets,” Perry emphasised.

Second, BI and the Ministry of Finance are encouraging foreign fund inflows through SRBI instruments to offset outflows from SBN and the stock market. Third, Perry expressed BI’s commitment to continue purchasing SBN in the secondary market to maintain bond market stability. To date, BI’s SBN purchases year-to-date amount to Rp123.1 trillion.

Fourth, Perry continued, BI will keep banking and market liquidity loose. According to BI, indications of loose liquidity are reflected in double-digit primary money growth.

“We, along with the Finance Minister, are also maintaining liquidity in banking and markets more than sufficient, indicated by primary money growth that is always double-digit. The latest primary money growth is 14.1%,” he said.

Next, Perry stated that BI will limit US dollar purchases in the domestic market without underlying from the previous US$100,000 to US$50,000 per person per month. This step is taken to maintain rupiah stability and curb speculators.

“So purchases of dollars up to or above 25,000 must use underlying. That is what we will strengthen; we will strengthen this domestically,” said Perry.

Fifth, BI will continue to strengthen offshore market interventions through NDF by expanding the participation of domestic banks in conducting transactions in foreign markets.

“In addition to the interventions we continue to carry out, we are also allowing domestic banks to participate in selling offshore NDF abroad so that the supply is greater, thus strengthening the stabilisation of the rupiah exchange rate,” he said.

Finally, BI will increase supervision of dollar buying activities by banks and corporations. Perry said the supervision is conducted jointly with OJK to ensure financial system stability remains intact.

“We send supervisors there, coordinating with Ms Friderica Widyasari,” he said.

Finance Minister Purbaya added that the Ministry of Finance will issue debt securities denominated in Chinese yuan, known as Panda Bonds. This policy is aimed at reducing reliance on the US dollar.

“So we won’t be too dependent on the dollar anymore. Our diversification will be better going forward. Our prospects are good; no need to be afraid. The President also told me earlier to convey the message that my money is sufficient; there’s plenty of money. So you don’t need to be afraid,” Purbaya stressed.

Regarding the capital market, Purbaya said Indonesia’s economic growth is experiencing acceleration. He assured that Indonesia can now turn its economy around.

Therefore, he added, investors who choose to stay in Indonesia’s capital market and accumulate purchases will reap significant profits.

“Compared to before, which was 5 or slightly below 5. Our economy is experiencing acceleration. That’s what many people don’t realise, so people are a bit scared and exiting the capital market,” said Purbaya after the meeting with President Prabowo Subianto at the State Palace on Tuesday night (5/5/2026).

“I’ve been saying scoop it up, scoop it up before. If they follow, they should profit a lot going forward,” he said.

He also emphasised that the government will focus on maintaining economic growth in Q2-2026, including through continued economic stimulus.

“Clearly, the economy is heading towards faster growth figures, and we will maintain it for the second quarter with various policies, coordination with the central bank, and maintaining liquidity conditions,” said Purbaya.