BI Affirms That Keeping Fuel Prices Unchanged Can Help Stabilise the Rupiah

Jakarta - Bank Indonesia’s Senior Deputy Governor Destry Damayanti acknowledged that the government’s policy of maintaining prices for subsidised fuels like Pertalite could have positive implications for strengthening the rupiah exchange rate. This is particularly relevant as global crude oil prices fluctuate due to conflicts in the Middle East between Iran, the United States, and Israel, which are disrupting a major oil and gas route, the Strait of Hormuz, allowing the government to ensure stable domestic fuel prices. “The government’s decision not to raise fuel prices is positive for safeguarding the rupiah going forward,” Destry said at the Central Banking Forum 2026 by CNBC Indonesia in Jakarta on Monday (13/4/2026). According to Destry, the pressure on the exchange rate so far has actually been more due to the strengthening of the US dollar index (DXY). This has led to heightened movements in the dollar exchange rate against various other countries’ currencies, including the rupiah. “Is Indonesia alone? No. Since the attack in Iran, several countries have experienced deep depreciation. We are also down 1.91% year-to-date. Exchange rate movements are not happening in isolation,” Destry explained. As is known, the rupiah exchange rate opened weaker against the US dollar on the first trading day of the week, Monday (13/4/2026), in line with the strengthening of the US dollar in global markets. Referring to Refinitiv data, the Garuda currency began trading in the red zone at Rp17,100/US, ordepreciatedby0.09. On the other hand, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was observed strengthening by 0.37% to 99.010 at 09:00 WIB. The US dollar surged against major world currencies as investors returned to safe-haven assets following lengthy talks between Washington and Tehran that failed to yield a peace agreement. This situation has kept the market overshadowed by uncertainty persisting into the seventh week.