Bank Indonesia Intervenes to Stabilize Rupiah Following Mass Protests

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September 1, 2025 | 03:03 pm

TEMPO.CO, Jakarta - Bank Indonesia (BI) will continue to remain in the market to maintain the stability of the exchange rate and the adequacy of rupiah liquidity post the recent protests. Head of Monetary Management and Securities Asset Department at Bank Indonesia, Erwin Gunawan Hutapea, stated that BI is in the market to ensure that the rupiah moves in line with its fundamental value through a well-functioning market mechanism.

"Bank Indonesia is in the market to ensure that the exchange rate of the rupiah moves in line with its fundamental value through a well-functioning market mechanism. In this context, Bank Indonesia continues to strengthen stabilization measures, including NDF interventions in the offshore market and interventions in the domestic market through spot transactions, DNDF, and SBN in the secondary market," said Erwin in a written statement on Monday, September 1, 2025.

He mentioned that the BI maintains adequate rupiah liquidity by providing the banking sector with access to liquidity through repurchase agreements (repo), foreign exchange (FX) swaps, and the purchase of government bonds (SBN) in the secondary market, as well as lending and financing facilities.

At the opening of trading on Monday in Jakarta, the exchange rate of the rupiah was recorded at 16,472 per U.S. dollar, strengthening by 28 points or 0.17 percent compared to the closing of trading on Friday afternoon, August 29, 2025, which briefly touched 16,500 per U.S. dollar.

Previously, at the opening of trading on Friday, August 29, 2025, the rupiah weakened by 1 point or 0.01 percent to 16,354 per U.S. dollar from 16,353 per U.S. dollar in the previous session.

Rully Arya Wisnubroto, an economist from Mirae Asset, assessed that the depreciation of the rupiah was slightly influenced by protests in several locations in Jakarta and global factors affecting the rupiah exchange rate in the recent period.

Antara contributed to this report

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