BI to Maintain 24-Hour Surveillance of Rupiah During Extended Lebaran Holiday 2026
Jakarta — Conflict in the Middle East between Iran, the United States, and Israel has prompted Bank Indonesia (BI) to heighten vigilance over rupiah exchange rate movements.
BI Deputy Governor Destry Damayanti stated that although domestic financial markets will close during the 2026 Lebaran holiday period, the rupiah continues to be traded internationally, necessitating continuous 24-hour monitoring.
“The domestic market is closed, but the markets overseas are not,” Destry said during a Bank Indonesia monetary board press conference on Tuesday, 17 March 2026. “That is what we are continuously watching out for. We monitor markets 24 hours a day, tracking the dollar and rupiah-dollar movements through the NDF market.”
Destry emphasised that vigilance over exchange rate movements is crucial as the Middle East conflict has demonstrably worsened global financial market uncertainty, evidenced by sustained outflows of foreign capital from emerging markets.
In March 2026, portfolio investment recorded net outflows of USD 1.1 billion, driven by heightened global financial uncertainty stemming from the Middle East conflict. This reversed the pattern seen in January-February 2026, which collectively saw net inflows of USD 1.6 billion.
Foreign capital outflows have been a primary driver of currency weakness against the US dollar.
“With rising risk premiums due to exceptionally high global uncertainty, emerging market currencies across the board are experiencing depreciation,” Destry explained.
Bank Indonesia recorded the rupiah exchange rate at Rp 16,985 per US dollar on 16 March 2026, representing a depreciation of 1.29 per cent compared to end-February 2026 levels, in line with broader weakness across non-USD currencies.
“Throughout March alone, the rupiah has depreciated 1.29 per cent. However, other countries in the region have experienced greater pressure—India 1.52 per cent, the Philippines 3.71 per cent, and Thailand 4.47 per cent. It demonstrates that we in this region are facing the same challenges,” Destry noted.