BI Responds to Rupiah Weakening Near Rp18,000 Level During Eid al-Adha Holiday

Bank Indonesia (BI) has responded to the rupiah’s weakening nearing the Rp18,000 per US dollar level. BI Communication Department Head Ramdan Denny Prakoso stated that the continued depreciation of the rupiah is due to ongoing Middle East geopolitical tensions and sustained high demand for US dollars.

According to Bloomberg, the rupiah fell 35 points, or 0.20%, to Rp17,880.50 per US dollar at Friday’s (29 May 2026) close, compared to Rp17,845.50 in the previous session.

“Pressure on the rupiah’s exchange rate continues due to ongoing global uncertainty from Middle East conflict developments, alongside seasonal increases in foreign currency demand for foreign debt (ULN) repayments and dividend repatriation, amid limited US dollar inflows,” Denny said in a press statement in Jakarta on Friday (29 May 2026).

In response to the ongoing rupiah depreciation trend, Denny said BI remains committed to being present in the market to maintain rupiah exchange rate stability around the world, around the clock. This commitment is realised by optimising foreign exchange market interventions through Non-Deliverable Forward (NDF) transactions in the offshore market, including spot transactions and Domestic Non-Deliverable Forward (DNDF) in the domestic market, alongside consistent and measured purchases of government securities (SBN) in the secondary market. Additionally, BI continues to strengthen the effectiveness of its monetary policy mix by enhancing the structure of pro-market monetary instrument interest rates.