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 amid mounting pressure from global markets and foreign investment outflows. The policy is being pursued to maintain national economic resilience while ensuring the inflation target remains within the established range. Bank Indonesia Governor Perry Warjiyo said the recent development of the rupiah exchange rate shows a condition that is weaker than previously forecast. The situation is a concern for the monetary authority because it has the potential to affect broader economic stability. According to Perry, pressure on the rupiah is influenced not only by ongoing global uncertainty, but also by the increasing need for foreign exchange domestically. In addition, the outflow of foreign portfolio investment from the Indonesian financial market has put additional pressure on exchange rate movements. “The rupiah exchange rate has shown developments that are weaker than forecast. Besides continuing global turmoil and high domestic foreign exchange demand, the weakening of the rupiah exchange rate is also driven by foreign portfolio investment outflows from Indonesia,” Perry said in his statement in Jakarta, Tuesday (9/6/2026). Facing these conditions, Bank Indonesia considers it necessary to take additional measures to strengthen domestic financial market stability. One of the main focuses is increasing the attractiveness of Indonesian financial assets to regain the interest of global investors. According to Perry, the return of foreign capital inflows is important to support exchange rate stability and strengthen the foundation of the national economy amid ongoing high external challenges. BI views rupiah stability as having 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 turmoil. “Bank Indonesia deems it necessary to take further steps to strengthen rupiah exchange rate stabilisation by improving yields and a number of other incentives to encourage incoming foreign investment flows,” Perry said. In addition to maintaining exchange rate stability, Bank Indonesia also places inflation control as one of the main priorities of monetary policy.