Bank Indonesia vows intervention as rupiah hits 18,000 per US dollar

Jakarta (ANTARA) - Bank Indonesia will maintain a continuous presence in financial markets to stabilize the rupiah amid global risk-off sentiment after the currency breached the 18,000 mark against the U.S. dollar, an official said Friday.

Erwin Gunawan Hutapea, head of the central bank's monetary and securities asset management department, said BI is actively ensuring that market mechanisms function smoothly despite ongoing foreign capital flight.

"Interventions continue consistently through non-deliverable forward (NDF) transactions in the offshore market, spot and domestic non-deliverable forward (DNDF) transactions in the domestic market, and purchases of government securities (SBN) in the secondary market," Hutapea said.

He noted that portfolio outflows are expected to persist as rising global risk-off sentiment bolsters the greenback, piling pressure on emerging market assets.

However, he emphasized that the rupiah’s depreciation remains in line with regional peers, having weakened by a modest 0.28 percent so far this quarter.

Indonesia's external buffers remain solid, with foreign exchange reserves recorded at $146.3 billion at the end of September 2026.

"Bank Indonesia also maintains sufficient liquidity and manages the interest rate structure in the money market, and continues to coordinate and communicate intensively with corporations, market players, and other related parties," Hutapea added.

The rupiah fell 83 points, or 0.46 percent, to 18,021 per dollar at Friday’s opening, down from the previous close of 17,938.

The currency's slide coincided with domestic stock market turbulence on Friday morning, triggered by an announcement from global index provider Morgan Stanley Capital International (MSCI).

MSCI stated Thursday that it has launched a consultation with market participants regarding a proposal to reclassify Indonesia’s capital market status from emerging market to standalone market.

The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (IDX) plunged 469.86 points, or 8.01 percent, to open at 5,393.92 on Friday morning, triggering a trading halt. Meanwhile, the index of 45 blue-chip stocks, the LQ45, fell 49.14 points, or 8.33 percent, to 540.95.

Translator: Rizka, Kenzu
Editor: Aditya Eko Sigit Wicaksono
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