SRBI Becomes BI's Weapon to Bring Rupiah Back to Rp 17,880/US$

Bank Indonesia (BI) continues to strengthen its rupiah exchange rate stabilisation policy by optimising various instruments, including the interest rate on Bank Indonesia Rupiah Securities (SRBI).

This was affirmed by Bank Indonesia Governor Perry Warjiyo during the presentation of the BI Board of Governors Meeting results on Wednesday (22/7/2026). BI assesses that this effort has yielded positive results, with the rupiah strengthening back to Rp 17,885 per US dollar on 21 July 2026, after having weakened since the end of June 2026 due to the resurgence of conflict in the Middle East and strengthening market expectations of a Federal Funds Rate hike.

“With these developments, the rupiah exchange rate against the US dollar is relatively stable compared to the level at the end of June 2026 of Rp 17,880,” Perry stated.

Perry explained that to maintain rupiah exchange rate stability, Bank Indonesia continues to optimise intervention in both the offshore Non-Deliverable Forward market and spot and Domestic Non-Deliverable Forward transactions in the domestic market.

“The SRBI interest rate was raised to attract foreign portfolio investment inflows and strengthen rupiah exchange rate stability,” he said.

BI Senior Deputy Governor Destry Damayanti emphasised that although the benchmark interest rate did not rise, the central bank provided incentives through SRBI. This was done to encourage capital inflows into the country as a measure to stabilise the exchange rate.

“The SRBI incentive has an attractive spread so that it can attract inflows into our portfolio investment,” she stressed.

According to BI data, non-resident holdings of SRBI increased from Rp 238.09 trillion on 15 June 2026 to Rp 288.65 trillion, representing 27.11% of the total SRBI position, on 20 July 2026.