Dollar Returns to Rp17,500, BI Confirms Global Impact!
Jakarta, CNBC Indonesia - Bank Indonesia (BI) has commented on the rupiah’s renewed weakening against the US dollar in Wednesday’s (13/5/2026) trading session ahead of the long holiday weekend.
According to Refinitiv data, the Garuda currency opened trading with a 0.06% depreciation to Rp17,500/US$ this morning. This weakening followed a sharp 0.49% correction to Rp17,490/US$ at yesterday’s close, marking the rupiah’s weakest closing level ever.
BI’s Head of Communications Department, Ramdan Denny Prakoso, explained that the rupiah’s depreciation is influenced by global dynamics, particularly the Middle East conflict causing rising oil prices. This condition is pressuring not only the rupiah but also many other currencies, including the won, baht, rupee, and peso.
“Well, these global dynamics are causing the majority of the world’s currencies to weaken, not just the rupiah. There’s the Philippine peso, the Thai baht, the Indian rupee, the South African currency, the Chilean one, the Korean won, something like that,” he said.
Additionally, as previously stated by the BI Governor, domestic US dollar demand has increased due to the dividend repatriation season, foreign debt payments, and Hajj pilgrimage needs.
BI has responded by continuing to strengthen the rupiah’s resilience through the seven strategic steps announced earlier.
“We remain convinced that with these measures, the rupiah will stabilise and tend to strengthen. Because we believe Indonesia’s economic fundamentals are very good compared to other countries,” Denny said.
This is evidenced by Indonesia’s Q1-2026 economic growth of 5.61% and prudent management of foreign debt. Thus, BI is confident the rupiah will strengthen again.
Currently, BI remains on standby in the market, including the US NDF market. This is to maintain rupiah exchange rate movements.
“Therefore, with Bank Indonesia continuously present in the market through those seven strategic steps to stabilise the rupiah, and also our good economic fundamentals,” he explained.
“Of course, we are convinced that with synergy among BI, ministries, and institutions, we can make the rupiah stable and strengthen on its own,” Denny emphasised.
Last week, BI Governor Perry Warjiyo reported to President Prabowo on the seven strategic steps to strengthen the rupiah going forward. The first step is to strengthen interventions in the foreign exchange market, both domestically and abroad, to stabilise the rupiah.
“Our foreign exchange reserves are more than sufficient to carry out rupiah exchange rate stabilisation,” he clarified.
The second and third steps focus on strengthening capital flows and monetary-fiscal coordination. According to Perry, Bank Indonesia is encouraging increased inflows through Bank Indonesia Rupiah Securities (SRBI) instruments to offset outflows from Government Securities (SBN) and stocks, as well as continuing to purchase SBN in the secondary market.
“We have purchased SBN from the secondary market year-to-date amounting to Rp123.1 trillion. We will coordinate, including with the Finance Minister on buybacks and such. Coordination between fiscal and monetary is very tight,” said the BI Governor.
Furthermore, the fourth and fifth steps include maintaining loose banking liquidity and limiting dollar purchases in the domestic market.
“Previously Rp100,000 per person per month, now reduced to Rp50,000 per person per month. That’s what we directly coordinated with KSSK for strengthening,” he continued.
The sixth and seventh steps involve strengthening offshore market interventions and increasing oversight of banking and corporate activities. Additionally, oversight is tightened through coordination with the Financial Services Authority (OJK) to ensure financial system stability is maintained.
“Primarily, we look at corporate banks with high dollar buying activities; we send supervisors there, coordinating with OJK Chairwoman Frederika Widyasari to ensure financial system stability,” said the BI Governor.