TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto approved seven Bank Indonesia (BI) strategies to strengthen the rupiah exchange rate, especially after it weakened (undervalued) in recent days.
"We reported to the President, and the President approved and then provided reinforcements for seven important steps taken by Bank Indonesia to strengthen the rupiah and stabilize it going forward," said Bank Indonesia Governor Perry Warjiyo in a press conference following a limited meeting between President Prabowo and the Financial System Stability Committee (KSSK) at the Merdeka Palace, Jakarta, Tuesday evening, May 5, 2026.
The first of these seven strategies is that Bank Indonesia will continue to strengthen its intervention in the foreign exchange market, both domestically and internationally, to maintain the stability of the rupiah exchange rate.
"Our foreign exchange reserves are more than sufficient to stabilize the rupiah exchange rate," Perry said.
Perry continued, explaining that BI's second and third strategies focus on strengthening capital flows and fiscal-monetary coordination.
He emphasized that BI is striving for capital inflows into the country through Bank Indonesia Rupiah Securities (SRBI).
"We agreed that for the time being, the SRBI (Indonesian Central Bank) needs inflow so that SRBI inflow can cover the outflow of SBN (government securities) and stocks. We are coordinating with the Minister of Finance to ensure that inflow from foreign portfolios continues to occur from the beginning of the year until now (year-to-date), strengthening the rupiah exchange rate," Perry said.
Related to this, the third strategy is for Bank Indonesia to coordinate with the Ministry of Finance to purchase SBN from the secondary market.
"We have purchased Rp123.1 trillion of SBN from the secondary market year-to-date, and we will coordinate, including allowing the Minister of Finance to repurchase and other related matters. Close coordination between the fiscal and monetary sectors is needed," said the BI Governor.
Perry explained that the fourth strategy is for Bank Indonesia, together with the Ministry of Finance, to maintain loose liquidity in the banking sector and the money market. The fifth strategy is for Bank Indonesia to impose restrictions on the purchase of US dollars in the domestic market.
"We, along with the Minister of Finance, are maintaining more than adequate liquidity in the banking and money markets, as indicated by the consistently double-digit growth in base money, most recently reaching 14.1 percent," Perry said.
Meanwhile, regarding restrictions on dollar purchases, Perry explained that initially, purchases of dollars without underlying assets (physical assets) in the domestic market were limited to US$100,000, but this maximum limit has now been lowered to US$50,000 per person per month.
"We are directly coordinating with the Financial System Stability Committee (KSSK) to strengthen this," Perry said.
In the same press conference, Perry stated that Bank Indonesia is also preparing a further restriction of up to US$25,000 per month per day for purchases in the domestic market.
"We are preparing, we will lower it again to 25,000, so that dollar purchases up to or above 25,000 must use an underlying asset," said BI Governor Perry Warjiyo.
Then, the sixth and seventh strategies relate to strengthening intervention in offshore markets and increasing supervision of banking and corporate activities.
"We also allow domestic banks to participate in selling offshore NDFs (non-deliverable forwards) abroad, thereby increasing supply, which will strengthen the stabilization of the rupiah exchange rate," said Perry, explaining Bank Indonesia's sixth strategy to strengthen the rupiah.
Regarding the seventh strategy, Perry emphasized tightened supervision through coordination with the Financial Services Authority (OJK) to ensure financial system stability is maintained.
"Most importantly, we are looking at corporate banks with high dollar purchasing activity. We are sending supervisors there, coordinating with Mrs. Frederika Widyasari, Chairperson of the OJK, to ensure financial system stability is maintained," said BI Governor Perry Warjiyo.
Read: Why Did Bank Indonesia Cut Dollar Purchase Limit to US$50,000?
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