BI Details Factors Behind Rupiah Exchange Rate Strengthening
Jakarta, VIVA – Bank Indonesia (BI) Senior Deputy Governor, Destry Damayanti, stated that the rupiah exchange rate closed at Rp 17,865 per US dollar on Friday, 12 June 2026. This position represents an appreciation of 0.84 per cent compared to the closing level of Rp 18,010 per US dollar on 5 June 2026.
According to Damayanti, this development reflects the market’s positive response to Bank Indonesia’s policy mix. This includes the increase of the BI-Rate to 5.50 per cent, the strengthening of the SRBI interest rate structure, the provision of hedging swap incentives for foreign investors, and the opening of repo access to support banking liquidity.
“As well as the increased intensity of rupiah and foreign exchange monetary operations,” Destry said in her statement on Friday, 12 June 2026.
Furthermore, Destry noted that these measures are supported by close synergy between Bank Indonesia and the Government. Following the BI-Rate hike, foreign capital inflows have shown positive development, supported by the attractiveness of domestic financial instruments.
“The high interest from global investors is reflected in the increased inflows of non-resident SRBI and SBN transactions, which on 10 and 11 June 2026 were recorded at Rp 15.11 trillion and Rp 3.91 trillion, respectively,” she said.
In addition, Destry confirmed that foreign capital inflows have also occurred in Danantara international bonds, the initial sale of which successfully reached Rp 26.9 trillion. This development, she noted, demonstrates investor confidence in domestic assets.
She emphasised that external resilience is being further strengthened through financial cooperation between Bank Indonesia, the People’s Bank of China (PBOC), and the Hong Kong Monetary Authority (HKMA). Three agreements were reached, namely synergy to strengthen the financial resilience of each country and the strengthening of broader regional financial stability.
There is also the strengthening of the Bilateral Currency Swap Agreement (BCSA), as well as the reinforcement of the commitment to use local currencies in bilateral transactions through the expansion of Local Currency Transactions (LCT). Destry believes these steps will reduce dependence on the US dollar and support the stability of the rupiah exchange rate.
“Bank Indonesia will continue to be present in the market, optimising all policy instruments consistently and measurably, and strengthening coordination with the Government and various stakeholders to maintain the stability of the Rupiah exchange rate and strengthen the external resilience of the Indonesian economy,” said Destry.