BI Responds to Rupiah Breaching 17,400: Will Continue to Be Present in the Market
Head of Bank Indonesia’s Monetary and Asset Management Department, Erwin Gunawan Hutapea, stated that the rupiah’s exchange rate movements since the start of the Middle East conflict until now have been in line with the majority of other developing countries’ currencies.
“Bank Indonesia will continue to be present in the market to ensure that the market mechanism runs well,” Erwin said in a written statement on Tuesday, 5 May 2026.
The rupiah’s exchange rate against the US dollar weakened by 11 points or 0.07 percent to Rp17,405 per US dollar on Tuesday morning, from the previous close at Rp17,394 per US dollar.
Furthermore, Erwin revealed that several emerging market currencies have faced pressure during this period. The Philippine peso, for example, weakened by 6.58 percent, the Thai baht fell by 5.04 percent, and the Indian rupee depreciated by 4.32 percent. Similarly, the Chilean peso dropped by 4.24 percent, the rupiah weakened by 3.65 percent, and the Korean won declined by 2.29 percent.
To maintain exchange rate stability, Bank Indonesia is optimising interventions in the foreign exchange market through non-deliverable forward (NDF) transactions in the offshore market, spot transactions, and domestic non-deliverable forward (DNDF) in the domestic market.
In addition, the central bank is also purchasing government securities in the secondary market. These steps are being taken consistently and in a measured manner to safeguard the rupiah’s exchange rate stability amid ongoing global pressures.
Currency analyst at Doo Financial Futures, Lukman Leong, stated that the rupiah’s weakening is triggered by the escalating situation in the Middle East that is heating up. “The rupiah has the potential to weaken further against the strengthening US dollar, in response to the escalation in the Middle East,” said Lukman, quoted from Antara.
Lukman mentioned that external factors affecting the rupiah include the heating up of geopolitics in the Middle East. He also forecasted that the rupiah exchange rate would move in a limited range of Rp17,350 - Rp17,450 per US dollar.