Rupiah Under Pressure, Bank Indonesia Asked to Focus on Maintaining Exchange Rate Stability

US dollar and rupiah (Photo: dok. Antara)

JAKARTA - The weakening of the rupiah exchange rate had penetrated the level of Rp17,000 per US dollar, which was considered triggered by a combination of global pressures that occurred simultaneously.

Citing Bloomberg, at the opening of this morning's trading, the rupiah was at Rp17,015 per US dollar, weakening 90 points or about 0.53 percent compared to last Friday's closing at Rp16,925 per US dollar.

Head of Economist at Bank Permata, Josua Pardede, explained that the escalating conflict in the Middle East has pushed the world oil price to soar above US$100 per barrel, even surpassing US$110 per barrel.

According to him, this condition raises market concerns about the potential for disruptions in energy supply and the increasing risk of global inflation.

Josua added that the situation encouraged the strengthening of the US dollar because the currency was considered a safer asset for investors.

In addition, market expectations of a rate cut by the US central bank are also increasingly delayed, so the pressure on emerging market currencies, including the rupiah, is getting bigger.

"For Indonesia, the pressure is felt more because sentiment towards domestic assets has become more fragile after the outlook rating of the rating agency for Indonesia has declined, and data also shows that the rupiah has touched 17,015 per US dollar today," he said in a statement, Monday, March 9.

In facing this condition, Josua assessed that Bank Indonesia needs to place the stability of the rupiah exchange rate as the main priority.

Therefore, he added that the policy that is considered appropriate at this time is not to lower the benchmark interest rate in a hurry, but to maintain the interest rate while strengthening interventions in the foreign exchange market and the government securities market so that market turmoil does not develop into panic.

Previously, Bank Indonesia in February 2026 still maintained the benchmark interest rate at the level of 4.75 percent with a focus on efforts to stabilize the rupiah.

According to him, in a condition where the exchange rate is under pressure, the room for interest rate easing is considered very limited.

He also emphasized the importance of clear communication from Bank Indonesia to the market that foreign exchange reserves, domestic foreign exchange liquidity, and coordination with the government remain strong.

Josua added that if the spike in world oil prices lasts for a long time, the pressure that arises will not only have an impact on the rupiah exchange rate, but also has the potential to increase inflation, import costs, and the burden on the state budget.

"So, the key now is to dampen the turmoil, maintain market confidence, and then only open up room for easing when external pressure begins to subside," he said.