BI Acknowledges High Dollar Demand for Debt and Dividend Payments
Jakarta, CNBC Indonesia - Bank Indonesia (BI) Senior Deputy Governor Destry Damayanti has acknowledged that the rupiah’s depreciation is occurring amidst persistently high demand for the United States (US) dollar during this period. Destry conveyed this in a brief message to CNBC Indonesia.
“Additionally, domestic demand remains quite large in line with the pattern of dividend repatriation and external debt payments,” Destry said in a brief message to CNBC Indonesia on Thursday (4/6/2026).
On the other hand, the exchange rate weakening is still influenced by Middle East geopolitical tensions which have escalated again and hampered peace prospects, thereby keeping oil prices high and increasing global inflation risks as well as capital outflows from emerging countries.
Nevertheless, Destry emphasised that in general, the rupiah’s depreciation is still in line with the regional trend, with the rupiah weakening -7.44% on a calendar year basis. However, amidst this depreciation, BI recorded that foreign exchange reserves remained maintained at the level of US$ 146.2 billion at the end of April 2026.
Destry confirmed that BI will continue to be present in the market and increase the intensity of intervention to ensure the market mechanism runs well and the stability of the rupiah exchange rate is maintained in accordance with its fundamentals. In addition, BI continues to strengthen the interest rate structure of pro-market monetary instruments to keep attracting capital inflows into domestic asset instruments.
Destry explained that continuous intervention will be carried out consistently through Non-Deliverable Forward (NDF) transactions in the offshore market, spot transactions and Domestic Non-Deliverable Forward (DNDF) in the domestic market, accompanied by purchases of Government Securities (SBN) in the secondary market.
“Coordination and communication with corporations and other market players continue to be carried out intensively,” she said.
Furthermore, BI has officially tightened the limit on US dollar purchases from US$ 50,000 per month per person to US$ 25,000 per month per person. This rule is effective from 2 June 2026.
This rule was created with the aim of achieving rupiah stability amidst a global environment full of pressure. Furthermore, the limits for derivative transactions in the form of forward and domestic non-deliverable forward (DNDF), swaps, as well as transactions other than forward, DNDF or swaps, are declared unchanged.
The transaction limit for forward and DNDF derivatives remains valid per month and per player at US$100,000 for purchase transactions, while US$10 million or equivalent per transaction for sale transactions. Meanwhile, the threshold for swap transactions remains limited to US$10 million per transaction.