BI states rupiah continues to face pressure from global uncertainty
Bank Indonesia (BI) has responded to recent rupiah exchange rate developments, particularly during the Iduladha 1447 H holiday period. BI’s Communication Department Head, Ramdan Denny Prakoso, stated that rupiah pressure is still influenced by ongoing global uncertainties due to the Middle East conflict.
‘Additionally, there is a seasonal increase in foreign currency demand, including for external debt repayments and dividend repatriation, amid limited US dollar inflows,’ said Ramdan in a statement received on Friday (29 May).
BI has affirmed its commitment to remain active in the market to maintain rupiah exchange rate stability. This is being achieved by optimising foreign exchange interventions through offshore NDF transactions, spot and Domestic NDF (DNDF) transactions in the domestic market, and consistent, measured purchases of SBNs in the secondary market.
‘Furthermore, BI is strengthening the effectiveness of its monetary policy mix by enhancing pro-market interest rate structures to maintain the attractiveness of domestic financial assets and support foreign capital inflows,’ Ramdan explained.
On the US dollar demand side, BI has set a cash purchase threshold for foreign currency without underlying at US$25,000 per entity monthly, effective from June 2026.
Ramdan said BI is strengthening coordination with relevant authorities to support financial market and exchange rate stability, including through enhanced oversight of banks and corporations with high US dollar purchasing activities.
‘BI will continue to monitor global and domestic financial market developments and remain active in the market, taking necessary and measured steps to maintain rupiah exchange rate stability and support Indonesia’s external economic resilience,’ he concluded.
The rupiah’s persistent pressure, breaking through the Rp17,800 per US dollar level, has drawn serious attention from experts.
The rupiah showed positive performance in Friday’s (29 May 2026) trading session.
Today’s rupiah exchange rate showed positive performance at the opening of trading on 29 May 2026, with the currency strengthening to Rp17,827 per US dollar.
Finance Minister Purbaya Yudhi Sadewa affirmed the state budget remains resilient despite the rupiah weakening to Rp17,830 per dollar, with worst-case scenarios prepared in case of further depreciation.
The rupiah weakened to Rp17,677 per US dollar on Friday morning due to Middle East tensions.
Rupiah stabilisation efforts are deemed insufficient without synchronised fiscal and monetary policy coordination.
Amid global economic uncertainties and rupiah fluctuations, BI’s benchmark interest rate policy remains a crucial instrument for maintaining national economic stability. Over the past five years, the BI Rate has moved dynamically, from pandemic-era lows to a recent rise in 2026 to control inflation and bolster economic resilience.
According to BI data up to April 2026, the average monthly LCT participants reached 5,265, a sharp increase from 497 in 2021 and 1,741 in 2022.
BI is expanding the DHE SDA instrument to allow non-US dollar foreign currencies, including the yuan, from 1 June 2026.
A 50-basis-point increase in the benchmark BI Rate to 5.25% has not immediately prompted banks to raise deposit or lending rates.