BI Market Intervention to Stabilise Rupiah Amid Iran–US Conflict
Amid escalating tensions in the Middle East, Bank Indonesia reaffirmed its commitment to maintaining the rupiah’s exchange-rate stability. Senior Deputy Governor Destry Damayanti said the central bank would continue to actively intervene in the market to dampen potential volatility arising from the widening uncertainty caused by the Iran–US conflict.
Interventions will be carried out decisively and consistently, he said in an official statement on Wednesday (4 March).
The interventions involve a range of instruments, including Non-Deliverable Forward (NDF) trades in offshore markets, spot transactions, and Domestic Non-Deliverable Forwards (DNDF) in the domestic market.
According to data from Bloomberg, as of 9:35 p.m. EST on 3 March 2026, the USD/IDR rate stood at 16,918, up 46 points or 0.27% from the previous close.
In addition, the central bank also purchased Surat Berharga Negara (SBN), government securities, in the secondary market to bolster rupiah stability.
Destry noted that to date the rupiah’s depreciation has remained in line with regional trends, having weakened 0.51% month-to-date, a relatively positive outturn compared with other regional currencies.
“This is relatively better than the regional peers,” Destry said.
Moreover, Indonesia’s foreign exchange reserves remained at US$154.6 billion at the end of January 2026, while foreign inflows into the domestic financial markets in 2026 had reached Rp25.7 trillion. This indicates investor confidence in the stability of the national economy.
The rupiah opened on Wednesday, 4 March 2026, weaker by 58 points or 0.34% to Rp16,930 per US dollar from the previous close of Rp16,872.
The rupiah closed today at Rp16,872 per US dollar. See analysis of the impact of tensions in the Strait of Hormuz on the rupiah and the Indonesian economy.
The rupiah closed weaker by 81 points or 0.48% to Rp16,868 per US dollar on Monday (2/3). The depreciation was triggered by the Middle East conflict.
Bank Indonesia (BI) said it would continue to monitor financial market dynamics carefully and respond promptly to maintain rupiah stability amid the Middle East tensions.
The rupiah had closed at Rp16,787 per US dollar (27/2). The Iran–US tensions and a 104% tariff on solar panels were cited as the main triggers. See our full analysis.
Indonesia should be grateful for the noble heritage of the nation’s founders in the form of the philosophical and ideological basis of Pancasila and the Free and Active Foreign Policy in responding to geopolitical dynamics.
The Jakarta Integrated Index (IHSG) on the Indonesia Stock Exchange opened lower on Wednesday, 4 March 2026.
The escalation of Middle East tensions involving Iran and the United States is widening and affecting Gulf countries.
President Donald Trump claimed that Iran’s military power and leadership had “expired” after joint air strikes targeted the presidential office and nuclear facilities.
The Pentagon identified four of the six U.S. soldiers killed in Iran’s drone attack in Kuwait. Donald Trump warned of potential additional casualties.