Antara News·Indonesia·Wednesday, September 30, 2026 at 12:16 PM

BI, govt strengthen synergy to address deficit, stabilize rupiah

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Rizka Khaerunnisa, Yashinta Difa

Jakarta (ANTARA) - Bank Indonesia (BI) and the government are strengthening policy coordination to address structural vulnerabilities in the country's current account and safeguard the stability of the rupiah exchange rate amid a widening deficit.

The central bank reported Wednesday that the current account balance in the second quarter of 2026 recorded a deficit of US$12.5 billion, or 3.3 percent of Gross Domestic Product (GDP).

The figure widened from a US$3.6 billion deficit (1.0 percent of GDP) registered in the first quarter of 2026.

"Synergy is being pursued not only within the Financial System Stability Committee (KSSK) but also with various ministries and agencies—particularly regarding exchange rate stability—to improve the structure of our Balance of Payments (BOP) or current account," Executive Director and Head of the Monetary Management and Securities Assets Department at BI Erwin G. Hutapea said during a media briefing in Jakarta.

Erwin explained that improvements to the current account structure will be pursued through export promotion and better import management, particularly regarding foreign exchange payment obligations.

He noted that the cross-institutional coordination aligns with the BI Governor's commitment to maintain stability while promoting economic growth, addressing structural bottlenecks that cannot be resolved by monetary authorities alone.

In terms of trade management, BI is closely monitoring the implementation of the Government Regulation (PP) on Export Proceeds (DHE) to ensure foreign currency flows through domestic banks into local markets.

Furthermore, BI aims to attract long-term foreign capital inflows into the capital and financial accounts, favoring foreign direct investment (FDI) and long-term portfolio "real money" over short-term speculative capital.

"When a country runs a current account deficit, it means the demand for foreign currency exceeds its supply. Consequently, the exchange rate moves in line with that situation. Therefore, our task is to maintain stability," Erwin said.

Despite the widening deficit, BI data indicates that the rupiah's volatility remains relatively subdued compared to regional peers.

As of September 29, 2026, the rupiah's volatility stood at 7.30 percent, compared to 15.59 percent for South Korea, 8.74 percent for the Philippines, and 8.59 percent for Malaysia.

On a year-to-date basis up to September 29, the rupiah has depreciated by 7.74 percent compared to the end of the previous year.

Based on the Jakarta Interbank Spot Dollar Rate (JISDOR), the rupiah exchange rate stood at Rp17,877 per US dollar on Wednesday afternoon.

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