How Bank Indonesia Maintains Rupiah Stability

Bank Indonesia (BI) states it will maintain the rupiah’s exchange rate stability during the 2026 Eid al-Fitr holiday period amid rising global market volatility due to conflicts in the Middle East. BI Senior Deputy Governor Destry Damayanti stated that rupiah trading in overseas markets will continue, even though domestic financial markets will be closed during the holiday. This situation is seen as potentially triggering fluctuations that could impact the national economy. “Rupiah trading in offshore markets continues, and its fluctuations need to be monitored because they can affect the domestic economy,” said Destry in a written statement on Thursday, 19 March 2026. BI, according to her, will optimise various monetary policy instruments to maintain exchange rate stability while strengthening external resilience. These steps are taken in response to the potential escalation of conflicts in the Middle East, which could increase pressure on global financial markets. Additionally, the central bank is opening room for policy adjustments if necessary to ensure national economic stability remains maintained amid global uncertainty. As quoted from Antara, at the close of trading in Jakarta on Tuesday last, 17 March 2026, the rupiah exchange rate was at Rp 16,997 per US dollar. The Jakarta Interbank Spot Dollar Rate (JISDOR) on the same day was at 16,982 per US dollar. Bank Indonesia recorded that the rupiah weakened by 1.29 per cent (point to point/ptp) as of 16 March 2026 compared to the end of February 2026. This weakening is also in line with the weakening of non-US dollar currencies. Portfolio investment in March 2026 recorded net outflows of US$1.1 billion, triggered by increasing global financial market uncertainty due to the war in the Middle East. Previously, capital and financial flows in January-February 2026 cumulatively still recorded net inflows of US$1.6 billion, although the January 2026 trade balance only recorded a surplus of US$1 billion or a decrease from US$2.5 billion in December 2025 due to a slowdown in non-oil and gas export demand. Amid these pressures, Indonesia’s foreign exchange reserves position at the end of February 2026 remained 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 is above the international adequacy standard.