Rupiah Exchange Rate Strengthens Driven By BI Stabilization Policy And Foreign Capital Flow

Minister of Finance Sri Mulyani Indrawati said the rupiah exchange rate showed a strengthening trend towards the United States (US) dollar.

According to him, this condition cannot be separated from the support for stabilization policies carried out by Bank Indonesia (BI).

"The value of the rupiah exchange against the dollar shows a strengthening trend supported by the consistency of Bank Indonesia's stabilization policy in the midst of global uncertainty," he said at the KSSK Periodic Meeting Results Press Conference in 2025, Monday, July 28.

He explained that the current rupiah exchange rate showed improvement compared to April 2025, when US President Donald Trump first announced a reciprocal tariff policy, where the movement of the rupiah had weakened to touch IDR 16,865 per US dollar, but as of June 30, 2025, the rupiah managed to strengthen back to the level of IDR 16,235 per US dollar.

Sri Mulyani said that apart from Bank Indonesia's intervention, the strengthening of the rupiah was also driven by the entry of foreign capital flows into Indonesia, thus maintaining the availability of dollars in the domestic market.

"The trend of strengthening the rupiah is supported by a maintained capital inflow and a positive perception of investors towards Indonesia's economic fundamentals. The conversion of foreign to rupiah currency by exporters after the implementation of policy strengthening related to foreign exchange of export products (DHE) SDA also supports the appreciation of the rupiah exchange rate," he continued.

In the future, he is optimistic that the stability of the rupiah will continue to be maintained with full support from Bank Indonesia's policies.