Bank Indonesia (BI) Governor Perry Warjiyo has underscored the central bank’s unwavering commitment to maintaining the stability of the Rupiah amidst a landscape of global geopolitical and geoeconomic uncertainty. He emphasized that the seven strategic measures currently being implemented under the direction of President Prabowo Subianto represent an “all-out” effort to safeguard the national currency.
“This is not business as usual. These seven steps are all-out measures!” Perry declared during a press conference for the Financial System Stability Committee (KSSK) II in Jakarta on Thursday, June 7, 2026.
As part of this aggressive strategy, the Governor highlighted large-scale interventions across various markets. These include transactions in the offshore Non-Deliverable Forward (NDF) market, as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions within the domestic market. These extensive efforts contributed to a decrease in Indonesia’s foreign exchange reserves, which were recorded at 148.2 billion USD as of March 2026.
“Foreign exchange reserves did decline last month to 148.2 billion USD, but that amount is more than sufficient. We carefully measure the requirements for intervention. Remember, we accumulate reserves during periods of high inflows so that we can utilize them during ‘dry’ seasons when outflows are significant,” Perry explained, contextualizing the strategic use of national liquidity.
The intervention strategy is described as being “around the world and around the clock,” extending far beyond domestic borders. In the offshore NDF market, Bank Indonesia is active in major financial hubs, including Hong Kong, Singapore, London, and New York. Perry reiterated that such a comprehensive approach is far from standard procedure, labeling it a truly “all-out” defense of the currency.
To further stabilize the financial ecosystem, BI has utilized Bank Indonesia Currency Securities (SRBI) to attract foreign capital and balance the outflows observed in Government Securities (SBN) and the stock market. According to official records, SRBI has seen year-to-date (ytd) inflows reaching Rp 78.1 trillion. This stands in contrast to the stock market, which saw outflows of Rp 38.6 trillion, and SBN, which recorded a ytd outflow of Rp 11.7 trillion despite showing signs of recovery in recent weeks.
Perry noted that it is essential to compensate for these exits. “Foreign investors recently moved out of stocks and SBN. While SBN has seen recent inflows, if both are experiencing outflows, we cannot allow SRBI to follow suit. We must compensate to ensure overall inflows,” he stated.
Despite the current pressure on the currency, the Governor remains firm in his assessment that the Rupiah is currently undervalued, trading below its true fundamental level. This suggests that there is significant room for the currency to stabilize and eventually strengthen, supported by Indonesia’s robust economic data.
The nation’s economic fundamentals remain solid, characterized by a positive Q1 2026 growth rate of 5.61 percent (yoy), low inflation at 2.42 percent (yoy), and a trade surplus that has persisted for 71 consecutive months since May 2020. Furthermore, foreign exchange reserves continue to be maintained at high levels despite recent interventions.
Addressing the Rupiah’s recent depreciation, which saw it breach the Rp 17,400 per US dollar mark, Perry attributed the volatility to a combination of global and seasonal factors. Global triggers include rising crude oil prices, heightened geopolitical tensions in the Middle East, and high US interest rates at 4.41 percent. Additionally, a strengthening US Dollar Index has led foreign investors to pull capital from emerging markets worldwide, including Indonesia.
On the domestic front, seasonal factors have also played a role. During the April–May period, demand for foreign currency typically surges to accommodate Hajj and Umrah pilgrimages, corporate dividend repatriations, and the repayment of foreign debt principals and interest. “This is simply the current condition. Bank Indonesia is going all out to protect the Rupiah, maintaining close coordination with the government and continuing to receive full support from the President,” Perry concluded.
Summary
Bank Indonesia Governor Perry Warjiyo has implemented seven “all-out” strategic measures to stabilize the Rupiah amidst global geopolitical and economic uncertainty. These efforts include large-scale market interventions across domestic and international financial hubs such as Singapore, London, and New York. Additionally, the central bank utilizes Bank Indonesia Currency Securities (SRBI) to attract foreign capital and offset outflows from the stock and government bond markets.
Despite the Rupiah recently breaching Rp 17,400 per US dollar due to seasonal demand and high US interest rates, Governor Warjiyo maintains that the currency remains undervalued. Indonesia’s economic fundamentals remain strong, supported by a 5.61 percent growth rate and a consistent trade surplus for over 71 months. The country’s foreign exchange reserves of 148.2 billion USD are considered more than sufficient to continue these defensive interventions and maintain financial stability.