Rupiah briefly touches Rp 17,700 per US dollar as BI steps up interventions in the FX market

Jakarta — Governor of Bank Indonesia (BI) Perry Warjiyo said the authorities continue to strengthen policy to stabilise the rupiah amid worsening global volatility and high domestic demand for foreign exchange in the second quarter of 2026. Pressure on the rupiah comes as the US dollar strengthens and capital outflows from emerging markets rise. This condition has led to weaker currencies in many countries, including Indonesia. The rupiah on 19 May 2026 stood at Rp 17,700 per US dollar. The rupiah weakened by 2.20 percent on a point-to-point basis versus the end-April 2026 level. According to Perry, rupiah pressure is not only influenced by external factors but also rising domestic FX needs. In Q2 2026, FX demand rose quite high due to seasonal factors, especially for dividend payments and foreign debt obligations. Domestically, high demand for US dollars from businesses and corporations is seen as contributing to pressure in the FX market. Dividend payments and foreign debt obligations are the main factors driving the increased need for foreign currency in this period. To safeguard rupiah stability, BI is increasing the intensity of interventions in the foreign exchange market, both in offshore and domestic markets. “Bank Indonesia continues to increase the intensity of foreign exchange interventions, both through interventions in the offshore non-deliverable forward (NDF) market and via spot and DNDF transactions in the domestic market,” Perry said. Interventions in the offshore market are aimed at maintaining global market expectations of the rupiah. Meanwhile, interventions in the domestic market are directed to ensuring sufficient liquidity and maintaining domestic financial market stability.