BI's Response to Rupiah Slumping to Rp 17,105 per US Dollar

Bank Indonesia (BI) has commented on the rupiah’s depreciation. Senior Deputy Governor of Bank Indonesia, Destry Damayanti, stated that maintaining rupiah stability is currently the institution’s top priority. “To that end, BI will optimise the use of all available monetary operation instruments and monetary operation policies to safeguard exchange rate stability,” Destry said in a written statement on Tuesday, 7 April 2026. According to her, BI is consistently and measuredly present in the money market, both in the spot market, the Domestic Non-Deliverable Forward (DNDF) market, and the offshore NDF market. Destry also assessed the impact of the Middle East conflict as two-sided. Because the rise in commodity prices and Indonesia’s position as an exporter could provide positive effects for the domestic economy. That condition, Destry said, can offset pressure on the exchange rate. On Tuesday’s trading, 7 April 2026, the rupiah exchange rate closed at Rp 17,105 per US dollar. Director of PT Traze Andalan Futures, Ibrahim Assuaibi, opined that this development is influenced by investors preparing for potential escalation of the Middle East conflict, ahead of the deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz. Meanwhile, on the internal side, Ibrahim said economists view the commodity-based subsidy design as opening loopholes for consumption by the affluent group. “The energy subsidy scheme, which is not yet on target, is in the spotlight amid the global oil price surge,” he said in a written statement on Tuesday, 7 April 2026. According to Ibrahim, the surge in world oil prices due to global conflict is a severe blow to Indonesia’s fiscal condition amid high dependence on fuel imports. Because the price increase far above the state budget assumption enlarges the energy subsidy burden. However, on the other hand, the government’s fiscal space is assessed as increasingly limited to dampen such volatility.