Rupiah Strengthens 0.84%, BI Cites Positive Response to Policy Mix
Bank Indonesia (BI) stated that the rupiah’s appreciation of 0.84% over the past week reflects a positive market response to the central bank’s policy mix. On Friday (12/6), the rupiah closed at Rp17,865/Rp17,875 per US dollar, strengthening from the position of Rp18,010/Rp18,020 per US dollar on 5 June 2026.
Deputy Senior Governor Destry Damayanti explained that this development was supported by various policy measures taken by Bank Indonesia. These included raising the BI-Rate to 5.50%, strengthening the structure of Bank Indonesia Rupiah Securities (SRBI) interest rates, providing hedging swap incentives for foreign investors, and increasing the intensity of rupiah and foreign exchange monetary operations, supported by close synergy with the government.
“This development reflects a positive market response to Bank Indonesia’s policy mix,” Destry said in an official statement on Friday (12/6).
Following the BI-Rate increase, foreign capital inflows showed positive development as the attractiveness of domestic financial instruments increased. High global investor interest was reflected in the rise of non-resident SRBI transactions and government securities (SBN), which on 10 and 11 June 2026 recorded inflows of Rp15.11 trillion and Rp3.91 trillion respectively.
Additionally, foreign capital inflows also occurred through Danantara’s international bonds, which raised Rp26.9 trillion in their initial sale. This condition is seen as demonstrating investor optimism towards the prospects of the national economy and Indonesian financial assets.
“This development shows investor confidence in domestic assets,” Destry said.
On the other hand, Indonesia’s external resilience was also strengthened through financial cooperation between Bank Indonesia, the People’s Bank of China (PBOC), and the Hong Kong Monetary Authority (HKMA). Three agreements were reached: synergy to strengthen the financial resilience of each country while maintaining regional financial stability, strengthening the Bilateral Currency Swap Agreement (BCSA), and reinforcing the commitment to use local currencies in bilateral transactions through the expansion of the Local Currency Transaction (LCT) scheme.
“This step will reduce dependence on the US dollar and support rupiah exchange rate stability,” Destry stated.
Going forward, Bank Indonesia affirmed it will continue to be present in the market by optimising all policy instruments consistently and measurably. BI will also strengthen coordination with the government and various stakeholders to maintain rupiah exchange rate stability and strengthen the external resilience of the Indonesian economy. With these various developments, the rupiah is believed to continue strengthening against the US dollar towards its fundamental level.