Bank Indonesia is actively intervening in foreign exchange markets to stabilize the rupiah, which recently hit a record low against the U.S. dollar. Senior Deputy Governor Destry Damayanti stated that currency stability is a top priority, and the central bank will deploy all available tools. The pressure on the rupiah is attributed to global dynamics, including market reactions to international conflicts.
The rupiah saw a significant dip, weakening by as much as 0.35 percent to 17,090 per dollar on Tuesday morning. Year-to-date, the currency has fallen over 2 percent against the dollar, mirroring trends in some regional peers.
Damayanti confirmed interventions in spot and non-deliverable forward currency markets. Bank Indonesia is also prepared to purchase government bonds in the secondary market and aims to boost inflows by enhancing the appeal of rupiah-denominated certificates (SRBI).
While the rupiah's weakness is expected to negatively impact economic activity, higher commodity prices are anticipated to partially offset these effects.