Eid Holiday Season: How Will Bank Indonesia Continue to Safeguard the Rupiah?

Bank Indonesia (BI) has assured that it will continue to monitor the rupiah’s exchange rate movements in offshore markets even as the domestic market is closed during the Nyepi Holy Day and Eid al-Fitr. This was stated by Bank Indonesia Governor Perry Warjiyo to emphasise the central bank’s commitment to maintaining rupiah stability. “We may take a break for Eid, but the offshore non-deliverable forward (NDF) market continues to operate, and BI New York will keep safeguarding the rupiah,” Perry said on Tuesday (17/3/2026). Meanwhile, BI Senior Deputy Governor Destry Damayanti added that BI is continuously monitoring the rupiah market 24 hours a day and is prepared to intervene in global markets if needed. “We will undertake all necessary efforts, including interventions in the spot market, DNDF, and NDF,” Destry said. The ongoing war in the Middle East region has led BI to leave no room for lowering the benchmark interest rate (BI Rate) in the March 2026 Board of Governors’ Meeting (RDG) announcement. BI emphasised that it will focus on rupiah exchange rate stability amid global uncertainties stemming from the war in the Middle East. “In the current situation, where volatility and uncertainty are very high, BI will focus on stabilisation, particularly on how to maintain our rupiah’s stability,” Destry said. BI is closely observing developments in the Middle East and their broader impacts on emerging markets, including Indonesia. Based on the BI Board of Governors’ discussions, the main impacts are fluctuations in global oil prices and their ripple effects on world economic growth and global inflation. Additionally, there are clear impacts on the deteriorating global financial markets. BI noted outflows of foreign portfolio capital from emerging market countries, including Indonesia. Furthermore, the strengthening of the US dollar index is also pressuring the currencies of emerging markets, including the rupiah. BI recorded that as of 16 March 2026, the rupiah was at Rp16,985 per US dollar, or weakened by 1.29% (month-to-date) compared to the end-February 2026 level, in line with the weakening of non-USD currencies. “As an illustration, currently all emerging market currencies are under pressure. The rupiah has indeed depreciated by 1.29%, but we see that other countries like India at 1.52%, the Philippines at 3.71%, and the Thai baht at 4.47%. This means we in this region are facing the same issues. However, at BI, we will certainly continue to focus on maintaining that stability,” she explained. Destry emphasised that BI will optimise monetary operation instruments to provide attractive yields amid rising risk premiums due to very high global uncertainties. BI is confirmed to continue interventions, both in non-deliverable forward (NDF) transactions in offshore markets and spot and domestic non-deliverable forward (DNDF) transactions in the domestic market. In addition, the central bank is strengthening foreign exchange market transaction policies that will take effect in April 2026 to support rupiah exchange rate stability, namely by adjusting the cash forex purchase threshold against the rupiah from US$100,000 per participant per month to US$50,000 per participant per month, increasing the DNDF/forward sale threshold from US$5 million per transaction to US$10 million per transaction, and increasing the buy and sell swap thresholds from US$5 million to US$10 million per transaction. Destry added that as a precautionary measure during the long Eid al-Fitr 1447 Hijriah/2026 CE holiday, BI continues to monitor the rupiah market against the US dollar in the NDF market. “Even though it’s a holiday for Eid, our colleagues at BI will continue to work with BI New York for monitoring. If needed, we will enter the market to intervene in the global NDF market,” she said.