Rupiah Hits 17,400; Bank Indonesia Vows Market Presence

The Head of the Monetary and Asset Management Department at Bank Indonesia (BI), Erwin Gunawan Hutapea, stated that the rupiah’s exchange rate fluctuations since the onset of the Middle East conflict remain in line with the performance of most other emerging market currencies.

"Bank Indonesia will continue to be present in the market to ensure that market mechanisms run properly," Erwin said in an official statement on Tuesday, May 5, 2026.

The rupiah weakened by 11 points, or 0.07 percent, on Tuesday morning, May 5, reaching Rp17,405 per US dollar compared to its previous close of Rp17,394.

Furthermore, Erwin revealed that several emerging market currencies have faced pressure during this period. For instance, the Philippine peso weakened by 6.58 percent, the Thai baht fell by 5.04 percent, and the Indian rupee declined by 4.32 percent.

Similarly, the Chilean peso dropped by 4.24 percent, the rupiah weakened by 3.65 percent, and the South Korean won decreased by 2.29 percent.

To safeguard exchange rate stability, Bank Indonesia is optimizing its interventions in the foreign exchange market through non-deliverable forward (NDF) transactions in offshore markets, alongside spot and domestic non-deliverable forward (DNDF) transactions within the domestic market.

In addition, the central bank is purchasing government securities in the secondary market. This measured approach is being implemented to maintain the stability of the rupiah against persistent global headwinds.

Lukman Leong, a currency analyst at Doo Financial Futures, noted that the rupiah’s depreciation was primarily triggered by escalating tensions in the Middle East. "The rupiah has the potential for further weakening against a strengthening US dollar as it responds to the escalation in the Middle East," Lukman stated, as quoted by Antara.

Lukman identified the geopolitical situation in the Middle East as a key external factor influencing the currency. He also anticipated that the rupiah will continue to fluctuate within a range of Rp17,350 to Rp17,450 per US dollar.

Read: Bank Indonesia Unveils Measures to Support Rupiah Stability

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