BI Governor: Foreign Reserves Sufficient to Stabilise Rupiah
Bank Indonesia Governor Perry Warjiyo stated that the current position of foreign exchange reserves is still sufficient to support the institution’s efforts in stabilising the rupiah exchange rate. As of the end of March 2026, foreign exchange reserves were recorded at US$148.2 billion.
Perry explained that although the position of foreign exchange reserves has decreased compared to February, the amount is still adequate for BI to carry out large-scale interventions. “But US$148.2 billion is more than enough; we measure the needs for interventions,” said Perry during a press conference on the results of the periodic meeting of the Financial System Stability Committee in Jakarta on Thursday, 7 May 2026.
Perry stated that foreign exchange reserves are accumulated during periods of large capital inflows. These reserves are then used when there is capital outflow or foreign capital flows out of the domestic market.
According to Perry, the intervention measures taken by BI to strengthen the exchange rate are all-out, both in the domestic spot market, foreign Non-Deliverable Forward (NDF), and Domestic NDF. “We intervene in foreign markets; in Hong Kong we intervene, in Singapore we intervene, in London we intervene, in New York we intervene; that’s not business as usual, that’s all-out,” said Perry.
On trading Thursday, 7 May 2026, the rupiah exchange rate closed stronger at Rp17,333 per US dollar. Director of PT Traze Andalan Futures Ibrahim Assuaibi assessed that this development was influenced by optimism over the possibility of the Middle East war ending.
On the domestic side, Ibrahim said the exchange rate development was partly influenced by the potential adjustment of fuel prices (BBM). “The potential for BBM price adjustment is increasingly open amid increasing fiscal pressures due to the surge in global energy prices, plus the subsidy burden that could exceed the State Revenue and Expenditure Budget (APBN) assumptions,” he said in a written statement on Thursday, 7 May 2026.