Rupiah Ended at Rp17.881 per US Dollar, BI Remains Committed to Market Intervention
JAKARTA - Bank Indonesia (BI) emphasized that pressure on the rupiah exchange rate is still influenced by high global uncertainty, especially due to the development of conflicts in the Middle East, ahead of the holiday and Eid al-Adha 1447 H.
For information, based on Bloomberg data on Friday, May 29, 2021, the spot rupiah closed down 0.20 percent daily to Rp. 17,881 per US dollar, and in a week, the rupiah weakened 0.91 percent.
Based on the Bank Indonesia (BI) Jisdor, the rupiah weakened 0.52 percent daily to Rp17,883 per US dollar, and in a week, the rupiah weakened 0.93 percent.
Head of the Communication Department of Bank Indonesia, Ramdan Denny Prakoso, said that in addition to external factors, the increase in seasonal foreign exchange (foreign exchange) needs, such as for foreign debt payments (ULN) and repatriation of dividends, also added pressure on the rupiah amid limited inflows of US dollars.
"As stated by the Governor of Bank Indonesia (Perry Warjiyo) on previous occasions, Bank Indonesia continues to be committed to being present in the market to maintain the stability of the Rupiah exchange rate, around the world, around the clock," he said in a statement, Friday, May 29.
He added that Bank Indonesia reiterated its commitment to continue to maintain the stability of the rupiah exchange rate through various market intervention instruments.
Ramdan said that this step was carried out through Non-Deliverable Forward (NDF) transactions in the offshore market, spot transactions and Domestic Non-Deliverable Forward (DNDF) in the domestic market, as well as the purchase of State Securities (SBN) in the secondary market consistently and measured.
In addition to market interventions, he added that BI also strengthened the effectiveness of the monetary policy mix through strengthening the interest rate structure of market-friendly monetary instruments to maintain the attractiveness of domestic financial assets and support the inflow of foreign capital.
As for the control side of the demand for the US dollar, Ramdan said Bank Indonesia set a limit on cash transactions to buy foreign exchange against the rupiah without underlying of 25,000 US dollars per actor per month, which will take effect in June 2026.
"Bank Indonesia continues to strengthen coordination with relevant authorities to support financial market and exchange rate stability, including through strengthening supervision of banks and corporations with high US dollar purchase activities," he said.
Ramdan said Bank Indonesia will continue to monitor the development of global and domestic financial markets and will always be present in the market by taking the necessary steps consistently and measured to maintain the stability of the Rupiah exchange rate and support the external resilience of the Indonesian economy.