Bank Indonesia policy is coming under closer scrutiny as the rupiah faces renewed pressure in the foreign exchange market. The central bank is strengthening its monetary policy mix to ease currency volatility and help the rupiah move closer to its fundamental value.
Based on Bloomberg data, the rupiah opened at Rp 18,109 per US dollar in the spot market at 9:05 a.m. Jakarta time on Wednesday, July 29, 2026. The currency weakened by 26 points, or 0.14%, from the previous session.
The latest depreciation comes amid elevated global uncertainty, prompting Bank Indonesia to intensify its efforts to maintain exchange rate stability while supporting inflation targets and sustainable economic growth.
Bank Indonesia Policy Focuses on Exchange Rate Stability
Bank Indonesia Senior Executive Director and Head of the Monetary and Securities Asset Management Department Erwin Gunawan Hutapea said the central bank remains committed to maintaining financial stability as a key foundation for sustainable economic growth.
According to Erwin, Bank Indonesia policy is being optimized to strengthen rupiah stability while ensuring inflation remains under control and economic activity continues to receive support.
“Amid high global uncertainty, exchange rate stabilization continues to be strengthened to consistently support the achievement of inflation targets and encourage economic activity,” Erwin said in a statement on Wednesday.
He added that the central bank was not relying solely on its benchmark BI-Rate. Other monetary instruments are also being strengthened to respond to currency market pressures.
Bank Indonesia Policy Uses Triple Intervention
One of the key elements of Bank Indonesia policy is the central bank’s triple intervention strategy.
The approach covers Non-Deliverable Forward (NDF) transactions in offshore markets, spot market intervention and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market.
Bank Indonesia is also purchasing government securities, or SBN, in the secondary market as part of its broader efforts to support financial market stability.
The central bank is further optimizing monetary instruments such as Bank Indonesia Rupiah Securities (SRBI). These instruments are supported by swap incentive facilities and DNDF hedging mechanisms.
According to Erwin, the measures are designed to stabilize the exchange rate while also supporting foreign capital inflows into Indonesia’s financial markets.
Managing Liquidity and Foreign Capital Flows
Another important part of Bank Indonesia policy is maintaining adequate liquidity across money markets and the banking sector.
Bank Indonesia said the outstanding position of SRBI has moved into a more controlled trend. Going forward, SRBI issuance will continue to be aligned with liquidity management requirements and efforts to attract foreign capital.
The strategy is expected to reinforce exchange rate stability while improving liquidity conditions in the domestic financial system.
Foreign capital flows remain particularly important for the rupiah. Stronger inflows can help support the currency and reduce pressure in the foreign exchange market, while sudden outflows can increase volatility.
By combining foreign exchange intervention with monetary instruments and liquidity management, Bank Indonesia is seeking to strengthen investor confidence during a period of heightened uncertainty in global financial markets.
Bank Indonesia Policy Also Supports Economic Growth
The central bank’s strategy extends beyond currency stabilization.
Bank Indonesia is continuing to optimize its policy instruments to support economic growth, including strengthening the Macroprudential Liquidity Incentive Policy (KLM).
The policy is designed to encourage financing for priority sectors while improving liquidity redistribution across the financial system. The goal is to make credit transmission more effective and ensure that financial sector liquidity reaches productive areas of the economy.
At the same time, Bank Indonesia is accelerating the digitalization of the payment system to support greater efficiency and contribute to economic growth.
The combination of monetary, macroprudential and payment system policies reflects the central bank’s broader effort to balance financial stability with economic expansion.
Bank Indonesia Policy Faces a Challenging Global Outlook
The effectiveness of Bank Indonesia policy will remain closely watched as global financial conditions continue to evolve.
The central bank must navigate currency volatility while responding to changes in global interest rates, international capital movements and broader economic uncertainty.
For investors, the direction of foreign capital flows and the effectiveness of Bank Indonesia’s intervention measures will be important indicators for the rupiah’s near-term outlook.
The latest policy response shows that Bank Indonesia is using a broad range of tools rather than relying on a single instrument. Through foreign exchange intervention, SRBI management, liquidity policies and macroprudential measures, the central bank aims to stabilize the rupiah while keeping financial conditions supportive of economic growth.
The challenge ahead will be maintaining market confidence and ensuring that these policy measures remain effective as global conditions shift.
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Source: Investor Daily