BI Strengthens External Resilience to Anticipate Escalation of Middle East War

The central bank will also implement necessary adjustment measures to maintain national economic stability. Senior Deputy Governor of BI Destry Damayanti, in a written statement in Jakarta on Thursday, assured that the rupiah’s stability will be maintained throughout the 2026 Eid al-Fitr holidays as a precautionary step against increasing global market volatility due to the Middle East conflict. Destry explained that rupiah trading in foreign markets continues while the domestic market is closed during the Eid holidays. Meanwhile, its fluctuations can impact Indonesia’s economy. BI noted that the rupiah weakened by 1.29 percent (point to point/ptp) as of 16 March 2026 compared to the end of February 2026. This weakening aligns with the depreciation of non-US dollar currencies. Portfolio investment in March 2026 recorded net outflows of US$1.1 billion, triggered by rising global financial market uncertainties due to the war in the Middle East. Amid these pressures, Indonesia’s foreign exchange reserves position at the end of February 2026 remains well-maintained at US$151.9 billion. This amount is equivalent to financing 6.1 months of imports or 5.9 months of imports and government foreign debt payments, and it is above the international adequacy standard.