Rupiah Edges Slightly Stronger, US Dollar Exchange Rate Now at Rp18,010

Jakarta, CNBC Indonesia - The rupiah exchange rate managed to reverse course and edge slightly stronger against the US dollar at the close of trading on Friday (5/6/2026), after moving in volatile fashion around the Rp18,000/US$ level throughout the day. Citing Refinitiv data, the rupiah closed up 0.06% at Rp18,010/US.ThisstrengtheningprovidedabriefrespitefortheGarudacurrencyafterthepreviousday′strading, Thursday(4/6/2026), whentherupiahcloseddown0.45. That position represented the weakest level in the rupiah’s history against the US dollar. Although it ended higher, the rupiah’s movement throughout the day remained under pressure. The rupiah opened down 0.17% at Rp18,050/US$ before fluctuating quite volatilely within the Rp18,000-Rp18,050/US$ range throughout the day. Meanwhile, the US dollar index (DXY), which measures the strength of the greenback against six major world currencies, was observed still moving steadily at 99.258 as of 15.00 WIB. The government has just released the state budget realisation up to the end of May 2026. Finance Minister Purbaya Yudhi Sadewa stated that the state budget deficit reached Rp180.4 trillion, or 0.70% of GDP. This figure rose slightly compared to the position at the end of April 2026, which was Rp164.4 trillion, or 0.64% of GDP. Nevertheless, Purbaya assessed that the deficit position remains safe and is in line with the 2026 state budget design. “So if we calculate it the way they do externally, using the same method it is around 1.8% of GDP. So, from that perspective, our state budget is very safe,” Purbaya said at the APBN KiTA press conference, Friday (5/6/2026). Apart from the deficit remaining under control, the primary balance was also recorded at a surplus of Rp58.6 trillion. This condition shows that the state budget still has room to maintain fiscal sustainability amidst financial market pressures. Meanwhile, Bank Indonesia (BI) confirmed it still possesses a number of measures to maintain exchange rate stability. At least seven steps have been prepared by the central bank to ease pressure on the rupiah. First, BI will strengthen intervention in the foreign exchange market, both domestically and abroad. The intervention is carried out through spot transactions and Domestic Non-Deliverable Forwards (DNDF) in the domestic market, as well as Non-Deliverable Forwards (NDF) in overseas markets, including in global financial centres on a continuous or around-the-clock basis. Second, BI will optimise the Bank Indonesia Rupiah Securities (SRBI) instrument to keep rupiah-based assets attractive to investors. The resulting capital inflows are expected to help strengthen rupiah exchange rate stability and support adequate foreign exchange supply in the country. Third, BI will also purchase Government Bonds (SBN) in the secondary market. This step is part of the fiscal and monetary synergy to maintain sufficient liquidity in the money and banking markets. Fourth, BI will maintain adequate liquidity in the banking system and money market by keeping primary money or M0 growth above 10%, in line with monetary expansion. Fifth, BI is strengthening foreign exchange market transaction policy by lowering the cash threshold for purchasing foreign currency against the rupiah without underlying to US$25,000 per transactor per month, effective June 2026. BI is also expanding yuan and rupiah transactions domestically in the context of Local Currency Transactions (LCT). Sixth, BI is strengthening intervention in the offshore NDF market. This is done by expanding banking participation in foreign-currency-selling offshore NDF transactions against the rupiah in overseas markets for PUVA Main Dealers that meet BI requirements. Seventh, BI will strengthen supervision of banks and corporations with high US dollar purchasing activities. This supervision is carried out through close coordination with the Financial Services Authority (OJK).