Business · Markets · 2 hrs ago
Bank Indonesia Steps Up Measures to Stabilize the Rupiah
Bank Indonesia Governor Destry Damayanti said on Monday that the central bank is stepping up efforts to stabilize the rupiah amid global economic volatility.
The measures include interventions in the spot market and through non-deliverable forwards, plus hedging cost incentives introduced in late June.
The incentives and interventions have helped attract about US$8 billion to US$8.5 billion in capital inflows through swap instruments and domestic non-deliverable forwards.
President Prabowo Subianto has told the central bank to continue its efforts and check how well its measures are working.
BI is also watching inflation: core inflation was 2.8 percent in September, while volatile food inflation reached 5 percent.
The bank is coordinating with the Agriculture Ministry to bring food inflation back within its target range of 2.5 percent, plus or minus one percentage point.
Global interest rates and inflation remain a challenge, so BI says it will keep monitoring conditions to protect the rupiah's resilience.
Bank Indonesia is increasing market interventions to help stabilize the rupiah amid high global economic volatility.
Governor Destry Damayanti said President Prabowo Subianto instructed the central bank to continue its efforts and monitor their effectiveness.
Measures include interventions in spot and non-deliverable forward markets and incentives to reduce hedging costs.
The measures have attracted about US$8 billion to US$8.5 billion in capital inflows through swap instruments and domestic non-deliverable forwards.
BI is also watching inflation, with September core inflation at 2.8 percent and volatile food inflation at 5 percent.
- Who
- Bank Indonesia, led by Governor Destry Damayanti, is stepping up measures to stabilize the rupiah.
- What
- The central bank is using market interventions and hedging-cost incentives. It has also been instructed to monitor how effective the measures are.
- When
- Destry spoke on Monday, October 19, 2026.
- Where
- At the Presidential Palace complex in Jakarta.
- Why
- To mitigate the impact of high global economic volatility on Indonesia’s domestic economy and stabilize the rupiah.
This story does not have two clearly opposing sides.
Bank Indonesia began implementing hedging-cost incentives.
Core inflation was 2.8 percent and volatile food inflation reached 5 percent.
Destry Damayanti described Bank Indonesia’s stabilization measures after a limited cabinet meeting on economic affairs.
- Capital inflows
- Approximately US$8 billion to US$8.5 billion
- Core inflation
- 2.8 percent in September
- Volatile food inflation
- 5 percent in September
- Food inflation target
- 2.5 percent, plus or minus one percent
- Intervention markets
- Spot market and Non-Deliverable Forwards (NDF)
What people are saying
Essentially, Bank Indonesia will always remain present in the market,