Rupiah Weakens as BI Intervenes to Maintain Stability

Senior Deputy Governor Destry Damayanti said BI will continue to be present in the market to safeguard the rupiah’s exchange rate stability amid the widening Middle East conflict. According to Trading Economics data, the rupiah weakened to the level of Rp 16,917 per United States dollar on Wednesday, 4 March 2026 at 09:35 WIB.

‘Firm and consistent interventions will continue to be conducted through Non-Deliverable Forward (NDF) transactions in offshore markets, spot and Domestic Non-Deliverable Forward (DNDF) transactions in domestic markets, along with the purchase of Government Securities (SBN) in the secondary market,’ Destry said in a formal statement on Wednesday, 4 March 2026.

BI noted the rupiah had weakened by 0.51 percent month-to-date. According to Destry, the rupiah’s weakness remains in line with regional conditions. He also said that the foreign exchange reserves remained at around US$ 154.6 billion at the end of January 1016. Then, foreign capital inflows into the domestic financial market during 2026 were recorded at Rp 25.7 trillion.

On Tuesday 3 March 2026, the rupiah closed weaker at Rp 16,872 per US dollar. Ibrahim Assuaibi, Director of PT Traze Andalan Futures, said the rupiah’s weakness was partly due to the widening war in the Middle East, where Israel attacked Lebanon and Iran attacked a tanker in the Strait of Hormuz. The Strait of Hormuz is a vital trade route.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu said that the US-Israel war against Iran may take some time. ‘Analysts expect oil prices to stay high in the coming days while markets focus on the impact of the intensifying conflict in the Middle East,’ Ibrahim said in a statement on Tuesday, 3 March 2026.

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