BI Governor Outlines Two Fiscal and Monetary Strategies to Strengthen Rupiah

Bank Indonesia (BI) and the Ministry of Finance are strengthening the coordination of fiscal and monetary policies to maintain the stability of the rupiah exchange rate while supporting national economic growth.

BI Governor Perry Warjio emphasised that the coordination between fiscal and monetary authorities has been very close and will continue to be strengthened to face various economic challenges.

“We are continuously strengthening fiscal and monetary coordination, and currently, the focus is on ensuring that fiscal and monetary policies are in sync, supporting and strengthening each other within their respective authorities. This is to bolster joint efforts in stabilising the rupiah exchange rate,” Perry stated during a press conference at the House of Representatives (DPR RI) in Senayan, Jakarta, on Saturday, 6 June 2026.

According to Perry, two steps have been agreed upon to strengthen fiscal and monetary coordination in support of rupiah stability. The first step is to increase the yield attractiveness of domestic financial instruments to encourage the return of foreign capital inflows.

“With the rise in foreign interest rates, there has indeed been an outflow in stocks, Government Securities (SBN), and to a lesser extent, SRBI. Therefore, fiscal and monetary authorities have agreed to collectively increase yield attractiveness so that these inflows return in large volumes to support the stability of the rupiah exchange rate,” he said.

The second step involves maintaining adequate liquidity in the money market and the banking sector through the management of government cash, which remains deposited at Bank Indonesia. This is accompanied by an increase in the remuneration paid by BI to the government.

“There is certainly an increase in the remuneration or interest paid by BI to the government. Consequently, monetary operations can continue to support the stability of the rupiah exchange rate while fiscal operations also provide support,” Perry added.

He further noted that the synergy established thus far will be continuously strengthened to maintain macroeconomic stability and drive national economic growth.

“We have agreed to continue strengthening the fiscal coordination that has been robust thus far. It is now being reinforced and will be continuously strengthened in a sustainable manner, supporting and reinforcing each other to drive economic growth and macroeconomic stability in accordance with existing dynamics,” he concluded.