BI Mitigates Rupiah Risks Amid Middle East Conflict Escalation; Strategy Outlined

Jakarta – Bank Indonesia’s Head of the Monetary Management and Securities Assets Department (DPMA), Erwin Gunawan Hutapea, has addressed the current situation and developments in the Middle East, as well as the potential implications for the rupiah’s exchange rate.

He stated that in line with the escalation of conflict in the Middle East following US military strikes on Iran, which has triggered risk-off sentiment in global financial markets, Bank Indonesia will continue to monitor market movements carefully and respond appropriately, including ensuring the rupiah exchange rate moves in accordance with its fundamentals.

“Bank Indonesia will remain active in the market through interventions via both Non-Deliverable Forward (NDF) transactions in overseas markets and spot transactions and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market,” Hutapea said in a statement on Monday, 2 March 2026.

He added that BI will continue to optimise policy measures to enhance the effectiveness of interest rate policy transmission.

The rupiah exchange rate against the US dollar is predicted to remain volatile. According to Jakarta Interbank Spot Dollar Rate (Jisdor) data, the rupiah traded at Rp 16,779 per US dollar on Friday, 27 February 2026, weakening by 21 points from the previous day’s level of Rp 16,758 on Thursday, 26 February 2026.

In spot market trading on Monday, 2 March 2026 until 09:05 WIB, the rupiah was traded at Rp 16,831 per US dollar, representing a depreciation of 44 points or 0.26 per cent from the previous level of Rp 16,787 per US dollar.