Rupiah Moves Flat Amid Bank Indonesia Governor's "Dovish" Remarks

Jakarta — The Indonesian rupiah closed flat on Tuesday, moving 0 points or 0.00 per cent to remain at Rp16,997 per US dollar from the previous close.

Currency analyst Lukman Leong from Doo Financial Futures assessed that the rupiah failed to maintain its earlier strengthening following remarks by Bank Indonesia (BI) Governor Perry Warjiyo that appeared dovish.

“The rupiah failed to maintain its strengthening against the US dollar after the BI Governor at the Board of Governors meeting (RDG) still appeared dovish by stating that policy easing room remains open,” he told ANTARA in Jakarta on Tuesday.

The Bank Indonesia Board of Governors meeting held in March 2026 over two days through Tuesday decided to maintain the benchmark interest rate, or BI-Rate, at 4.75 per cent.

The deposit facility rate was kept at 3.75 per cent, whilst the lending facility rate remained at 5.50 per cent.

The decision aims to strengthen the stability of the rupiah’s value from the impact of deteriorating global conditions resulting from conflict in the Middle East, as well as to maintain inflation targets for 2026-2027 within the target of 2.5 plus or minus 1 per cent.

In the Board of Governors meeting, BI Governor Perry Warjiyo made no further mention of opportunities for cuts to the benchmark BI-Rate amid rising global risks and pressure on the rupiah’s exchange rate.

Earlier, the rupiah’s exchange rate opened stronger on Tuesday morning in Jakarta, moving up 29 points or 0.17 per cent to Rp16,968 per US dollar from the previous close of Rp16,997 per US dollar. This was attributed to declining crude oil prices amid expectations that the Strait of Hormuz could soon be reopened.

“There are hopes that the Strait of Hormuz will be able to reopen soon following statements from US President Donald Trump that he will make an announcement shortly,” he noted.

The Bank Indonesia Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened to Rp16,982 per US dollar from the previous level of Rp16,990 per US dollar.