Rupiah Hits Record Low, Bank Indonesia Says Will 'Maintain Stability'

2 hours ago 7

TEMPO.CO, Jakarta - Bank Indonesia has spoken out about the rupiah depreciation on Tuesday, stating that the central bank is focused on maintaining the currency's stability, said deputy senior governor Destry Damayanti.

"Bank Indonesia is optimizing all monetary instruments at its disposal, as well as monetary policies to maintain exchange rate stability," said Destry in a written statement on Tuesday, April 7, 2026.

According to her, the central bank remains consistent and measured in the money market, both in the spot market, Domestic Non-Deliverable Forward (DNDF) market, and the offshore NDF market.

Besides, Destry said, the Middle East war presented two-sided impacts, as the rise in commodity prices could strengthen Indonesia's position as an exporter, which in turn offset the pressure on the rupiah exchange rate.

On Tuesday, April 7, 2026, the rupiah exchange rate closed at Rp17,105 per US dollar. Director of PT Traze Andalan Futures, Ibrahim Assuaibi, believes that this was influenced by investors preparing to face the potential escalation of conflict in the Middle East, ahead of the deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz.

Meanwhile, in Indonesia, Ibrahim said economists consider the commodity-based subsidy design to open up consumption opportunities for the affluent. "The energy subsidy scheme, which is not yet well-targeted, has come under scrutiny amid the surge in global oil prices," he said in a written statement on Tuesday, April 7, 2026.

According to Ibrahim, the surge in global oil prices due to global conflict has dealt a heavy blow to Indonesia's fiscal condition in the midst of high dependence on fuel imports. The price hikes that are far above the assumption outlined in the State Budget has increased the burden of energy subsidies. On the other hand, the government's fiscal room is increasingly limited to dampen such turmoil.

Read: Rupiah Weakens to Rp17,105 Amid US-Iran Escalation Fears

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