US Dollar Nears Rp18,000 Mark, Bank Indonesia Responds

Bank Indonesia (BI) has addressed the weakening of the Rupiah against the US Dollar as of Wednesday, 3 June 2026, with the US Dollar nearing the Rp18,000 level.

“Bank Indonesia will continue to monitor developments in global and domestic financial markets and will remain present in the market by taking necessary, consistent, and measured steps to maintain the stability of the Rupiah exchange rate and strengthen external resilience,” stated Ramdan Denny Prakoso, Head of the Bank Indonesia Communication Department, in a written statement.

According to Refinitiv data, the US Dollar had reached the level of Rp17,945 by 14:00 WIB, with the Rupiah continuing to weaken since the market opening. Ramdan ensured that BI remains active in the market, optimising all available policy instruments to ensure market mechanisms function correctly and to maintain sufficient foreign exchange liquidity to support financial market stability.

Furthermore, as of 2 June 2026, Bank Indonesia has implemented a new threshold for cash purchases of foreign exchange against the Rupiah without underlying documentation, set at USD 25,000 per participant per month.

Bank Indonesia also continues to encourage the use of local currencies in bilateral cooperation through the Local Currency Transaction (LCT) scheme. This initiative aims to reduce dependence on the US Dollar and mitigate exchange rate volatility risks. Such cooperation has already been established with China, Japan, Malaysia, Thailand, South Korea, and the United Arab Emirates.

According to Ramdan, the stability of the Rupiah exchange rate requires synergy from all stakeholders. “To this end, Bank Indonesia continues to strengthen coordination with the Government, the Financial Services Authority (OJK), the banking sector, the business community, and market participants to ensure that market mechanisms work effectively and to strengthen the external resilience of the national economy,” he emphasised.