BI: Hedging incentives since June support US$9.9 billion in inflows

Jakarta (ANTARA) – Bank Indonesia (BI) recorded that its hedging incentives, introduced in June 2026, helped support foreign capital inflows of US$9.9 billion as of 20 October 2026.

The incentives cover hedging through Domestic Non-Deliverable Forward (DNDF) instruments with BI, as well as conventional buy-hedging swap transactions with the central bank. BI has also introduced incentives for local currency transaction (LCT) transactions with partner countries.

“From June to October, we began implementing these incentive policies, both in the form of swaps and DNDF, and from last June until now they have succeeded in attracting inflows of up to US$9.9 billion,” BI Governor Destry Damayanti said at a press conference in Jakarta on Wednesday.

BI said it remains committed to maintaining rupiah exchange-rate stability by continuing to optimise all monetary instruments. These include strengthening incentives to boost foreign portfolio investment inflows and accelerating the deepening of the money and foreign-exchange markets (PUVA).

“Bank Indonesia continues to strengthen various policies to maintain rupiah exchange-rate stability against the effects of global volatility,” Destry said.

After strengthening until mid-September 2026, the rupiah stood at Rp17,985 per US dollar on 20 October, weakening by 0.61 per cent point-to-point compared with its position at the end of September 2026.

The movement was affected by escalating geopolitical tensions in the Middle East, a tightening US monetary policy stance and foreign investor sentiment in the stock market.

“Looking ahead, Bank Indonesia expects the rupiah to move stably, supported by the central bank’s commitment, attractive yields, inflation remaining within its target range and a still-positive domestic economic outlook,” Destry said.