BI Vows to Monitor Currency Market After Rate Hike

RRI.CO.ID, Jakarta - Bank Indonesia (BI) remains committed to closely monitoring developments in global and domestic financial markets, as the rupiah exchange rate continues to fluctuate despite the central bank’s recent interest rate hike.

After strengthening for two consecutive days, the rupiah weakened again on Thursday, approaching IDR 18,000 per US dollar.

“BI will also maintain the attractiveness of domestic financial instruments to support foreign capital inflows,” said BI Communication Department Executive Director Ramdan Denny Prakoso in a written statement on Friday, June 12, 2026. He added that BI would continue to optimize measures to stabilize the rupiah through market interventions.

Interventions are being carried out in the offshore market through Non-Deliverable Forward (NDF) transactions, and in the domestic market through spot and Domestic Non-Deliverable Forward (DNDF) transactions.

“Interventions are conducted consistently and systematically,” Denny said, noting that foreign investors have responded positively to BI’s policy mix.

Earlier this week, BI raised its benchmark interest rate (BI Rate) to 5.5 percent, outside the scheduled timeline. The central bank also increased yields on BI Rupiah Securities (SRBI), in line with rising yields on Government Securities (SBN).

According to Denny, the market’s positive response is reflected in stronger foreign capital inflows, particularly into SRBI instruments following the June 10 auction. Foreign funds have also begun to return to the SBN market, especially in short- and medium-term tenors.

“In line with these developments, the rupiah exchange rate against the US dollar continues to strengthen, returning to below the IDR 18,000 level,” Denny said.

On Thursday, the rupiah stood at IDR 17,988 per US dollar, compared with IDR 17,944 the previous day. (Gusti Panji)