Rupiah Under Pressure, BI Strengthens Strategy to Maintain Economic Resilience and Control Inflation
Bank Indonesia (BI) is taking further steps to strengthen the stabilisation of the rupiah exchange rate amidst increasing pressure from global markets and foreign investment outflows. This policy is being pursued to maintain national economic resilience while ensuring that inflation targets remain within the established range.
Bank Indonesia Governor Perry Warjiyo stated that the development of the rupiah exchange rate in recent times has shown a weaker condition than previously estimated. This situation is a concern for the monetary authority as it has the potential to affect broader economic stability.
According to Perry, the pressure on the rupiah is influenced not only by ongoing global uncertainty but also by the increasing demand for foreign exchange domestically. Additionally, the outflow of foreign portfolio investment from the Indonesian financial market has contributed further pressure to the exchange rate movement.
“The rupiah exchange rate has shown weaker development than expected. In addition to the ongoing global volatility and high domestic demand for foreign exchange, the weakening of the rupiah is also driven by the outflow of foreign portfolio investment from Indonesia,” Perry said in his statement in Jakarta on Tuesday (9/6/2026).
Maintaining National Economic Resilience
Facing these conditions, Bank Indonesia considers that additional steps are necessary to strengthen domestic financial market stability. One of the main focuses is to increase the attractiveness of Indonesian financial assets to regain the interest of global investors.
According to Perry, the return of foreign capital inflows is crucial to supporting exchange rate stability and strengthening the national economic foundation amidst high external challenges.
BI views rupiah stability as playing a strategic role in maintaining the resilience of Indonesia’s external sector. With a more stable exchange rate, risks to the national economy can be minimised, including the impact of ongoing global financial market volatility.
“Bank Indonesia deems it necessary to take further steps to strengthen the stabilisation of the rupiah exchange rate by restoring yields and providing other incentives to encourage the inflow of foreign investment,” said Perry.
Inflation Remains a Priority
In addition to maintaining exchange rate stability, Bank Indonesia also places inflation control as one of the primary priorities of monetary policy.