Flooring Guide by Cinvex – , JAKARTA — Bank Indonesia (BI) has declared its seven-step strategy to stabilize the rupiah, which has currently weakened past Rp14,000 per US dollar, as far from business as usual. This aggressive approach involves the maximum optimization of foreign exchange reserves for interventions in both domestic and international financial markets.
BI Governor Perry Warjiyo confirmed the central bank’s substantial interventions, which have visibly impacted foreign exchange reserves. As of March 2026, these reserves have decreased to US$148.2 billion. During a press conference held by the Financial System Stability Committee (KSSK) at the Financial Services Authority (OJK) office in Jakarta on Thursday (May 7, 2026), Warjiyo emphasized, “These seven steps are an all-out effort. Firstly, large-scale intervention using foreign exchange reserves, which as shown, fell to US$148.2 billion last month. However, we have measured it, and it is more than sufficient.”
Despite the erosion of domestic foreign exchange reserves due to these interventions, Governor Warjiyo assured that the current level remains robust. He noted it is equivalent to financing 6 months of imports, or 5.8 months of imports combined with government foreign debt payments. This figure comfortably surpasses the international adequacy standard of approximately three months of imports. “Please remember, these foreign exchange reserves were accumulated during times of great abundance. This is precisely why we are utilizing them during periods of scarcity, during significant outflows,” he added, highlighting the strategic foresight behind the reserve management.
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The central bank’s intervention strategy extends beyond mere scale, encompassing both domestic and global financial arenas. The two-period BI Governor underscored that offshore interventions are actively conducted in various international markets, including Hong Kong, Singapore, London (UK), and New York (US). “Around the world, around the clock,” he stated, clarifying their extensive reach into offshore Non-Deliverable Forward (NDF) markets.
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Beyond direct currency intervention, Bank Indonesia has also strategically increased the yield on Bank Indonesia Rupiah Securities (SRBI). This move is designed to attract foreign capital inflows into the domestic financial markets, particularly targeting stocks and Government Securities (SBN). Governor Warjiyo affirmed that the decision to raise SRBI yields was meticulously coordinated with other members of the KSSK, ensuring a unified approach to monetary stability.
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Highlighting the effectiveness of these measures, Perry Warjiyo concluded by noting, “Overall, SRBI inflows year-to-date have been greater than the net outflows from SBN. For instance, SRBI inflows year-to-date totaled Rp78.1 trillion, while stock outflows amounted to Rp38.6 trillion. Although SBN has seen inflows in recent weeks, its year-to-date figure still reflects an Rp11.7 trillion outflow.”
Based on previous reports, BI’s comprehensive rupiah stabilization efforts have garnered explicit support from President Prabowo Subianto. These seven critical steps include:
- Intervention in foreign exchange markets, both domestically and internationally.
- Optimization of the SRBI instrument.
- Purchases of SBN in the secondary market.
- Easing of banking liquidity.
- Limiting US dollar purchases from US$100,000 per person per month to US$25,000.
- Increasing the supply of dollars through offshore NDF markets.
- Tightening supervision of dollar purchases.
Summary
Bank Indonesia has implemented a seven-step strategy to stabilize the rupiah, which includes aggressive interventions in domestic and global financial markets. By utilizing foreign exchange reserves, the central bank aims to counteract currency depreciation despite a decline in reserves to US$148.2 billion as of March 2026. Governor Perry Warjiyo assures that this level remains sufficient to cover approximately six months of imports, well above international adequacy standards.
To further support the currency, the central bank has increased the yield on Bank Indonesia Rupiah Securities (SRBI) to attract foreign capital inflows and stabilize the financial system. These efforts are complemented by strategic measures such as limiting monthly US dollar purchases and enhancing supervision to curb outflows. Official data indicates that year-to-date inflows into SRBI have effectively balanced some of the net outflows observed in the government securities and stock markets.