Bank Indonesia (BI) is tightening its regulations on foreign currency purchases to bolster the stability of the Indonesian Rupiah, which currently faces pressure against the US dollar, trading near the IDR 17,600 level. In a strategic move to curb speculative demand, the central bank has lowered the monthly threshold for purchasing US dollars without an underlying transaction from USD 50,000 to USD 25,000 per person, effective this June.
According to BI Governor Perry Warjiyo, this policy is designed to ensure that only those with genuine economic needs are acquiring US dollars. This reduction follows a recent adjustment where the limit was previously lowered from USD 100,000 to USD 50,000, signaling a consistent effort by authorities to manage market volatility.
Beyond tightening purchase limits, the central bank is actively intervening in the foreign exchange market through spot, hedging, and forward transactions. To further stabilize the currency, BI has increased the yield on Sekuritas Rupiah Bank Indonesia (SRBI) to 6.41 percent. This measure is intended to encourage capital inflows, which have proven effective; net inflows through SRBI reached USD 105.16 billion year-to-date as of May 18, 2026.
“We raised the SRBI interest rate to maintain net inflows,” Perry explained during a working meeting with the House of Representatives (DPR) on Monday, May 18. “This helps increase the domestic supply of foreign exchange.”
In addition to managing dollar demand, BI is promoting the use of the yuan-rupiah transaction framework in the domestic market to reduce heavy reliance on the US dollar. Despite the current market pressures, the central bank maintains a robust financial position with foreign exchange reserves totaling USD 114 billion.
Perry emphasized that these reserves remain well above the Assessing Reserve Adequacy (ARA) standards set by the International Monetary Fund (IMF). “Our foreign exchange reserves are more than USD 100 billion. They are more than sufficient, allowing us to increase the intensity of our market interventions,” he concluded.
Summary
Bank Indonesia has reduced the monthly threshold for non-underlying US dollar purchases from USD 50,000 to USD 25,000 per person to curb speculative demand and stabilize the Rupiah. This policy adjustment complements the central bank’s ongoing interventions in the foreign exchange market and its strategy to increase the yield on Sekuritas Rupiah Bank Indonesia (SRBI) to attract capital inflows.
To further reduce reliance on the US dollar, the central bank is promoting the use of the yuan-rupiah transaction framework. Despite current market pressures, Bank Indonesia maintains a strong financial position with foreign exchange reserves of USD 114 billion, ensuring sufficient capacity for continued market intervention.