BI Says Rise in Non-Resident SRBI Holdings Supports Rupiah Strengthening

Bank Indonesia (BI) Governor Perry Warjiyo said the increase in non-resident (foreign) holdings of Bank Indonesia Rupiah Securities (SRBI) to Rp238.09 trillion has had a positive impact on the strengthening of the rupiah exchange rate. The position of SRBI as of 15 June 2026 was recorded at Rp1,021.1 trillion, with non-resident ownership rising to Rp238.1 trillion, or 23.3 percent of the total outstanding, thereby supporting rupiah exchange rate stability. He noted that the rupiah exchange rate against the US dollar on Wednesday (17/6) was recorded at Rp17,730 per US dollar, strengthening by 0.76 percent point-to-point compared to the level at the end of May 2026. The increase in SRBI holdings and the strengthening of the rupiah, he continued, were influenced by the stabilisation policy response undertaken by the central bank to dampen the impact of high global uncertainty and strong domestic corporate demand for foreign currency. These policies included raising the interest rates on 6, 9, and 12-month SRBI tenors to attract foreign portfolio investment inflows and strengthen rupiah exchange rate stability. According to the SRBI auction announcement on 17 June, the Weighted Average Accepted Rate, or the final interest rate paid by BI to winning bidders, was set at 7.12 percent for the 6-month tenor, 7.33 percent for the 9-month tenor, and 7.59 percent for the 12-month tenor. Perry stated that BI also intensified its intervention in the foreign exchange flow, both through intervention in the offshore Non-Deliverable Forward (NDF) market and through spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market. He said BI also provided a 10 percent reduction in the hedging swap rate for foreign investors to further increase attractiveness and compensate for obligations previously borne by investors. In addition, the central bank expanded its foreign exchange monetary operations instruments with spot and swap instruments in offshore Chinese Renminbi (CNH) or yuan against the rupiah, in line with the increasingly widespread use of Local Currency Transaction (LCT) for trade and investment settlement. Going forward, Bank Indonesia believes the rupiah exchange rate will stabilise and tend to strengthen, supported by BI’s commitment, attractive yields, and Indonesia’s solid economic growth prospects.