BI Confident Rupiah Exchange Rate Will Soon Return to Fundamental Levels

Senior Deputy Governor of Bank Indonesia (BI), Destry Damayanti, is confident that the rupiah exchange rate will return to its fundamental levels.

“BI predicts that this seasonal pressure will ease, allowing the rupiah exchange rate to return to its fundamental levels,” she explained, as quoted from Kompas.com on Tuesday (12/5/2026).

This is based on inflows of foreign capital into the domestic market, particularly in the State Securities (SBN) market and Bank Indonesia Rupiah Securities (SRBI).

Domestic foreign exchange liquidity is also adequate. Furthermore, third-party fund growth (DPK) reached 10.9 per cent year to date as of March 2026.

Continuous economic growth is believed to accelerate the rupiah’s strengthening.

“BI will continue to commit to being present in the market and optimising the use of all monetary operational instruments in order to reduce pressure on the rupiah,” she said.

It is known that at today’s close, the rupiah was at Rp 17,529 per US dollar.

“We leave it to the experts, the central bank. I think they will be able to control (the rupiah) well,” explained Purbaya, as quoted from Kontan on Tuesday (12/5/2026).

However, Purbaya and the Ministry of Finance (Kemenkeu) are not standing idle.

The hope is that the BSF will attract foreign funds into Indonesia.

“We will start helping tomorrow, perhaps by entering the bond market, using the Bond Stabilization Fund (BSF),” he explained.

“We will try to help the exchange rate, helping BI a little bit if possible. We still have a lot of idle money (Remaining Budget Surplus/SAL), we will intervene in the bond market so that yields do not rise too high,” stated Purbaya.