Analyst: BI Intervention Makes Rupiah Quars Stable Again

Illustration. (Photo: Doc. Antara)

JAKARTA - Currency observer and Profit Director of Forexindo Berjangka Ibrahim Assuabi considers that Bank Indonesia's (BI) intervention against the rupiah exchange rate (exchange rate) in the domestic market has made Indonesia's currency stable again.

"In order to calm down the Bank Indonesia market, it continues to carry out triple interventions in the DNDF (Domestic Non Deliverable Forward) trading, namely the foreign exchange, bonds, and repo markets, so that the weakening of the rupiah can be anticipated continuously (and) the rupiah is stable again, even though the global market is not doing well," he said in a written statement in Jakarta, quoted by Antara, Wednesday, April 9.

Triple intervention or three interventions include intervention in foreign exchange markets (varlas) in spot transactions and DNDF, as well as Government Securities (SBN) in the secondary market.

Optimizing triple intervention instruments in order to ensure adequacy of foreign exchange liquidity for banking needs and the business world as well as maintaining the confidence of market players.

In addition, another sentiment towards the rupiah exchange rate stems from a report from the Central Statistics Agency (BPS) which recorded that the Indonesian economy experienced 1.03 percent inflation on an annual basis or year-on-year (yoy) in March 2025.

On a year-on-year (yoy) basis, in March 2025 there was an inflation of 1.03 percent, or there was an increase in the Consumer Price Index (IHK) from 106.13 in March 2024 to 107.22 in March 2025.

On the other hand, the rupiah exchange rate was also influenced by sentiment from the implementation of an additional 50 percent import rate from the United States (US) on goods from China.

In total, the American government's tariff on imported goods from China reached 104 percent, consisting of an additional import fee of 20 percent, a reciprocal rate of 34 percent, and an additional tariff of 50 percent today.

So far, China has shown no intention of stepping down, with the Ministry of Trade pledging to fight until the end with the US over its increase in tariffs. The market also speculates that China is throwing away large holdings over US government bonds, leading to a major spike in yields, "said Ibrahim.

The rupiah exchange rate at the close of trading today in Jakarta strengthened by 18 points or 0.11 percent to Rp16,873 per US dollar from the previous Rp16,891 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (JISDOR) of Bank Indonesia today actually weakened to the level of Rp. 16,943 per US dollar from the previous Rp. 16,849 per US dollar.