BI Boss Ensures Rupiah Stability Is Still Maintained

Governor of Bank Indonesia Perry Warjiyo. (Photo: Doc. ANTARA)

Bank Indonesia (BI) ensures that rupiah stability is maintained in anticipation of the impact of uncertainty in reducing the policy interest rate of the United States (US) or the Fed Fund Rate (FFR) and geopolitical tensions in the Middle East.

Bank Indonesia Governor Perry Warjiyo conveyed that Indonesia's economy is one of the strong emerging markets (EMEs) in dealing with the impact of global rambatan due to uncertainty in the decline in the Fed Fund Rate (FFR) and increasing geopolitical tensions in the Middle East.

According to Perry, this is supported by prudent and closely coordinated monetary and fiscal policies. To strengthen external defense, Bank Indonesia's strong commitment to stabilizing the exchange rate is an important part.

"We continue to ensure that the stability of the Rupiah is maintained with foreign exchange interventions and other necessary steps," he said in his statement, Friday, April 19.

In addition, Perry conveyed that the management of market-friendly foreign portfolio flows, including "pro-market" monetary operations and integrated with the deepening of the money market, supports Indonesia's external economic resilience.

Previously, Perry said he would maintain Rupiah's stability and would oversee its progress in the future.

And will prepare a series of intervention measures such as the spot market (cash) or cash purchases or non-delivery forwards (NFD).

"We will ensure that the exchange rate will be maintained, we will intervene both through spots and non-delivery forwards (NFD)," he told reporters after attending a meeting with President Joko Widodo (Jokowi) at the Presidential Palace in Jakarta, Tuesday, April 16.

Perry said he would coordinate with the government for the monetary and fiscal parts. "We make sure we are in the market to take stabilization steps," he explained.