BI Governor Has 7 Strategies to Safeguard the Rupiah's Value: Here's the Breakdown!

Bank Indonesia (BI) has launched ‘seven strategies’ to maintain rupiah stability amid global pressures, with the rupiah’s value plummeting to Rp17,400 per US dollar. These aggressive measures have received direct approval from President Prabowo Subianto as part of a coordinated response to safeguard national economic resilience. BI Governor Perry Warjiyo revealed that the seven strategies are designed to strengthen the rupiah exchange rate from both domestic and global perspectives. “We reported to Mr President, and Mr President approved and then provided reinforcements for the seven important steps that Bank Indonesia will take to make the rupiah strong and stable going forward,” Perry said after a meeting at the Presidential Palace in Central Jakarta on Tuesday, 5 May 2026. The first step involves massive interventions in the foreign exchange market, both domestically and internationally, including through Domestic Non-Deliverable Forward (DNDF) instruments and NDF in global financial centres. “First, we will continue to conduct cash interventions and Domestic Non-Deliverable Forward domestically, as well as Non-Deliverable Forward (NDF) in foreign markets in Hong Kong, Singapore, London, and New York; we will continue to intervene to stabilise the rupiah both domestically and from abroad. Our foreign exchange reserves are more than sufficient to stabilise the rupiah exchange rate,” he explained. The second strategy focuses on recalling foreign fund flows through Bank Indonesia Rupiah Securities (SRBI) instruments to offset outflows from the bond and stock markets. “Thus, it truly maintains the inflow from foreign portfolios; year-to-date, there is still an inflow, and this strengthens the rupiah exchange rate,” he stated. Third, BI will continue purchasing Government Securities (SBN) in the secondary market as part of close coordination with the Ministry of Finance. “We have purchased SBN from the secondary market year-to-date amounting to Rp123.1 trillion, and we will coordinate, including with Mr Finance Minister (Purbaya Yudhi Sadewa) on buybacks and so on; there is very close coordination between fiscal and monetary policies,” he said.