Video: BI Synergy with Ministry of Finance, OJK, and LPS to Safeguard Rupiah Stability

Bank Indonesia, together with the Ministry of Finance, the Financial Services Authority (OJK), and the Indonesia Deposit Insurance Corporation (LPS), which are members of the Financial System Stability Committee (KSSK), has confirmed strengthened coordination to ensure the stability of Indonesia’s financial system amidst global economic and geopolitical volatility.

Bank Indonesia Senior Deputy Governor Destry Damayanti stated that the government and authorities within the KSSK continue to coordinate on policy directions to maintain domestic stability, including policies to safeguard the Rupiah exchange rate.

In an effort to maintain Rupiah stability and reduce dependency on the US Dollar, Bank Indonesia is continuously strengthening cooperation with the central banks of partner countries through Local Currency Transactions (LCT), which allow businesses to conduct transactions using local currencies. Currently, BI has implemented the LCT scheme with Malaysia, Thailand, Singapore, China, and Hong Kong, and is preparing to expand cooperation with South Korea, India, and Saudi Arabia.

Efforts to maintain Rupiah stability are also being driven through the policy on Export Proceeds from Natural Resources (DHE SDA) to keep foreign exchange flows within the country. However, this policy is assured not to disrupt the cash flow of businesses and exporters.