Bank Indonesia Vows 'All Out' Efforts to Keep Rupiah Stable
TEMPO.CO, Jakarta- The Governor of Bank Indonesia, Destry Damayanti, ensured that her side will be "all out" in maintaining the rupiah's exchange rate.
"We remain optimistic about our economy. We will do our utmost to maintain the stability of our exchange rate," she said at the BI Board of Governors Meeting in Jakarta on Wednesday, September 26, 2026, as quoted by Antara.
Destry was inaugurated as the new central bank leader earlier this month, replacing Perry Warjiyo, who resigned on July 25, 2026.
What are the measures?
According to Destry, the monetary policy Bank Indonesia undertakes to maintain rupiah stability relies not only on interest rates (the BI Rate) but also on incentive policies for hedging costs, as the central bank is working to strengthen external sectors. According to Investopedia, hedging involves an investing strategy aiming to reduce risk by taking an opposite position in a related asset.
In this regard, Bank Indonesia has reportedly expanded the underlying foreign funding transactions eligible for premium reduction incentives for Hedging Swaps (Hedging Swaps to Bank Indonesia) and Domestic Non-Deliverable Forwards (DNDF).
The incentives previously covered only portfolio inflows; it now also includes foreign loans by banks and foreign direct investment.
Bank Indonesia decided to keep its benchmark interest rate at 5.75 percent on Wednesday.
Rupiah Strengthens
With these measures, the rupiah exchange rate is said to have strengthened from August to mid-September 2026, although recent developments have come under pressure due to increasing global uncertainty.
" Alhamdulliah, today the market response was also good, the rupiah strengthened 55 basis points, bringing it to Rp17,805 (per US dollar). So, we will continue to monitor market movements," said Destry.
Furthermore, she emphasized the strengthening of synergy and coordination between the Indonesian government and the central bank to maintain the stability of the rupiah exchange rate.
"Now, of course, to boost exports, we must discuss with the government what superior commodities we can promote going forward," she said.
Antara contributes to the writing of this article.
Read: Why Bank Indonesia Kept BI Rate at 5.75%
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