TEMPO.CO, Jakarta - Bank Indonesia (BI) said it remains confident that the rupiah will stabilize and gradually strengthen despite recent pressure that pushed the currency beyond Rp17,500 per US dollar.
“We remain confident that with the measures being taken, the rupiah will stabilize and tend to strengthen because Indonesia’s economic fundamentals are still very strong compared to many other countries,” BI Communications Department Executive Director Ramdan Denny Prakoso told reporters at the central bank’s headquarters in Jakarta on Wednesday, May 13, 2026.
Ramdan said the central bank is closely monitoring global market dynamics and continuing efforts to stabilize the rupiah amid heightened volatility.
“Once the Jakarta market closes, we remain on standby in the European market and then in the US market to ensure rupiah movements remain stable, especially against offshore non-deliverable forward (NDF) transactions,” he said.
In addition to currency market intervention, BI is implementing six policy measures to support rupiah stability. These include strengthening the interest rate structure of Bank Indonesia Rupiah Securities (SRBI), continuing government bond purchases in the secondary market, ensuring sufficient liquidity in the money market and banking sector, strengthening foreign exchange transaction policies, deepening the money and foreign exchange markets, and increasing oversight of banks and corporations with high US dollar demand.
Ramdan explained that exchange rates across many countries have been heavily affected by global developments, particularly tensions in the Middle East that have pushed up global oil prices.
At the same time, higher United States interest rates and a stronger US dollar index have added pressure on emerging market currencies.
“These global dynamics have weakened most currencies worldwide, not only the rupiah, but also the Philippine peso, Thai baht, Indian rupee, Chilean peso, and South Korean won,” he said.
Beyond external pressures, Ramdan said recent rupiah weakness has also been driven by stronger domestic demand for US dollars during the dividend repatriation season, foreign debt repayments, and rising public demand for overseas travel related to Umrah and Hajj pilgrimages.
“We believe that through strong coordination between Bank Indonesia, ministries, and related institutions, the rupiah will stabilize and gradually strengthen. There is no reason for the rupiah not to stabilize and appreciate,” he said.
The rupiah traded around Rp17,500 per US dollar at 11:47 AM local time on Wednesday, May 13, according to spot market data.
During the first quarter of 2026, foreign portfolio investment recorded net outflows of US$1.7 billion. However, in the early second quarter through April 30, foreign capital flows returned to positive territory with net inflows of US$3.3 billion, mainly into SRBI instruments and government bonds, supported by rising yields.
Indonesia’s foreign exchange reserves stood at US$146.2 billion in April 2026, down US$2 billion from the previous month amid government foreign debt payments and rupiah stabilization measures by the central bank.
The decline occurred despite additional foreign exchange earnings from tax revenues, services, and government global bond issuance. Indonesia’s reserves had previously stood at US$148.2 billion at the end of March 2026.
Read: Govt to Provide Subsidies if Weak Rupiah Raises Food Prices
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