Rupiah Breaches Above Rp 17,400, BI to Further Cut US Dollar Purchase Limit to Maximum US$25,000

The exchange rate of the rupiah briefly reached Rp 17,400 per US dollar today. In response, Bank Indonesia (BI) is taking steps to further tighten dollar purchases domestically while accelerating currency diversification.

BI Governor Perry Warjiyo revealed that foreign exchange transaction restrictions are being tightened gradually, from the previous US$100,000 to US$50,000 per person per month, and will be reduced again to just US$25,000.

“The dollar purchase restrictions, which we have already lowered from US$100,000 to US$50,000, we are preparing to lower again to US$25,000, so purchases of dollars up to or above US$25,000 must use underlying documentation. Yes, that is what we will strengthen; this will be strengthened domestically,” said Perry after a meeting with President Prabowo Subianto at the Presidential Palace in Central Jakarta on Tuesday, 5 May 2026.

At the same time, BI is encouraging the use of alternative currencies to reduce the dominance of the US dollar. One development is direct yuan-rupiah transactions in the domestic market.

“Including domestically, the yuan market—Chinese yuan with the rupiah—has developed domestically because the local currency between us and China, yuan and rupiah, is very high, and now a domestic yuan-rupiah market has begun to form, including this local currency, thus reducing or diversifying from the dollar, which can strengthen,” explained Perry.

This policy represents a major strategic change by BI in maintaining rupiah stability, not only relying on market interventions but also controlling domestic dollar demand and expanding the use of alternative currencies.