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BANK Indonesia (BI) is deploying all of its monetary instruments to strengthen rupiah exchange rate stability amid heightened global market uncertainty.
“Bank Indonesia is optimizing all monetary instruments, including expanding incentive policies to boost foreign portfolio investment inflows, strengthen rupiah exchange rate stability, and accelerate the deepening of money and foreign exchange markets,” BI Governor Destry Damayanti said after the central bank’s Board of Governors meeting in Jakarta on Wednesday (9/23), 2026.
As part of this effort, BI expanded the scope of underlying transactions eligible for premium-reduction incentives for foreign funding, specifically those involving Hedging Sell Swaps and Domestic Non-Deliverable Forwards (DNDFs).
The policy now includes foreign direct investment and foreign bank loans, in addition to portfolio inflow transactions. Monetary intervention helped the rupiah recover from August through mid-September 2026, although global market headwinds have renewed short-term selling pressure.
As of September 22, the rupiah traded at IDR7,855 per US dollar, marking a modest 0.7% point-to-point depreciation from late-August levels.
Despite continued external turbulence, Destry expressed confidence in the local currency’s outlook.
“Looking ahead, Bank Indonesia projects that the rupiah exchange rate will remain stable, supported by Bank Indonesia’s commitment, attractive yields, inflation controlled within the target range, and a positive domestic economic outlook,” she concluded. [antaranews]
