Indonesia’s central bank intervenes in FX market after the rupiah hits a record low

[JAKARTA] Bank Indonesia (BI) has intervened to maintain the rupiah’s stability and avoid excessive volatility after the currency hit a record low against the dollar, Senior Deputy Governor Destry Damayanti told Reuters on Tuesday (Apr 7).

“Stabilising rupiah is certainly a top priority for us right now. We will use every tool and policy at our disposal, we will be all out,” she said, adding the pressure on the currency was largely due to global dynamics, including the market reaction to the US-Israeli war on Iran.

The rupiah weakened by as much as 0.35 per cent to 17,090 per dollar on Tuesday morning, according to LSEG data. The currency has fallen by more than 2 per cent against the dollar in 2026, which is in line with some of its regional peers, the data showed.

Destry said BI intervened in spot and non-deliverable forward currency markets, and was ready to buy government bonds in the secondary market if necessary.

Authorities will also try to increase inflows by improving the attractiveness of rupiah-denominated certificates known as SRBI.

She said the rupiah’s weakness would definitely have a negative impact on economic activity, although higher prices of its top commodities will help offset the impact. REUTERS