BI Deploys Key Strategy to Attract Foreign Funds and Stabilise Rupiah

Geopolitical risks in the Middle East are beginning to pressure Indonesia’s financial markets. The rupiah exchange rate has weakened, accompanied by outflows of foreign capital. To mitigate further risks, Bank Indonesia (BI) plans to intensify the issuance of Rupiah Bank Indonesia Securities (SRBI).

Governor BI Perry Warjiyo stated that the SRBI issuance plan is needed to maintain the stability of the rupiah exchange rate.

“Therefore, why now for 2026 the SRBI will start to increase so that we must also balance the needs to stabilise the rupiah exchange rate, interventions, and how the outflow is not too bad,” said Perry during a working meeting with Commission XI of the DPR in Jakarta on Wednesday (8/4/2026).

However, the BI Governor has not yet disclosed the target for additional SRBI issuance volume up to this year. This plan will also reverse the direction of SRBI policy, which was actually relaxed further in 2025.

Last year, Perry said, BI continued to reduce the SRBI issuance volume by Rp192.64 trillion, from Rp923.53 trillion on 31 December 2024 to Rp730.89 trillion on 31 December 2025. The aim was to encourage banks to disburse credit as liquidity was abundant with the SRBI reduction.

Then, in January 2026, there was an increase in SRBI issuance to Rp755 trillion. This continued in February 2026 to Rp837 trillion, and as of 30 March 2026, it stood at Rp831 trillion.

A war in the Middle East has caused crude oil prices to surge to an average of US$100 per barrel. Likewise, the strengthening of the US dollar has instantly led to rupiah depreciation and foreign fund outflows.

As is known, the rupiah exchange rate reached its all-time weakest position at Rp17,090/US$ at the close of trading on Tuesday (7/4/2026), which then raised concerns.

For the public, a weakening rupiah means there is potential for prices to become even more expensive, especially for import-based goods. This includes daily necessities and food.

For the business world, the weak rupiah can also have negative impacts. For importers, it will erode profit margins. Similarly, those with debts denominated in greenbacks must pay higher interest.

On one side, there is also capital outflow from emerging countries like Indonesia to safer assets.

“Since this year, there has been a large outflow from emerging markets to global financial markets, both in the form of bonds, stocks, and others. Then there is the strengthening of the US dollar, which is why from Bank Indonesia’s side, we need to recalibrate the various policies we are implementing,” said Perry.