Maintain Rupiah Stability, BI Boss: Every Day We Intervention

BI Governor Perry Warjiyo (photo: Antara)

JAKARTA - Bank Indonesia (BI) insists it is always active in the market to continue to monitor the movement of the United States (US) dollar currency and its impact on the rupiah exchange rate.

BI Governor Perry Warjiyo said that he continues to intervene almost every day, both in the spot market and in the domestic non-delivery forward market, to maintain the stability of the rupiah exchange rate in the midst of global turmoil.

"Bank Indonesia is always in the market and almost every day, even every day we intervene both in the spot market and domestically non-delivery forward so that the rupiah remains stable," Perry said at a press conference, Wednesday, February 19.

Perry assessed that the stability of the rupiah exchange rate was measured from the equivalent of the currency of developing countries because stability was important so that the Indonesian economy continued to run.

"Evolved countries that are our peer groups have China, Korea, Malaysia, Thailand, India and Singapore, that is equivalent there we direct. Stability is the most important thing so that our economy continues to roll. There is no economic country running without stability, including the stability of the rupiah exchange rate," he said.

Perry explained that that is why Bank Indonesia continues to be in the financial market to maintain the stability of the rupiah exchange rate at a time when global turmoil continues.

"Global turmoil continues and that is our commitment to maintain the stability of the rupiah exchange rate and thank God the rupiah moved stably even in February it strengthened," he explained.

Based on data until February 18, 2025, the rupiah exchange rate against the US dollar strengthened by 0.15 percent point to point (ptp) compared to the level at the end of January 2024.

Perry conveyed that the development was in line with the consistency of Bank Indonesia's stabilization policy and was supported by the continuing flow of foreign capital, attractive domestic financial instruments, and good prospects for Indonesia's economy.

However, the rupiah exchange rate against the US dollar has depreciated 1.06 percent year to date (ytd) from the end of December 2024.

However, Perry said that the Rupiah is relatively stable when compared to the group of currency in the developing country, Indonesia's main trading partner, while the group of developed countries outside the US dollar remains in a strong trend.

In the future, Perry said that the Rupiah exchange rate is predicted to be stable, supported by Bank Indonesia's commitment to maintain the stability of the Rupiah exchange rate, attractive returns, low inflation, and a good prospect of Indonesia's economic growth.

Perry emphasized that all monetary instruments will continue to be optimized, including strengthening the pro-market monetary operations strategy through optimizing SRBI, SVBI, and SUVBI instruments, to strengthen policy effectiveness in attracting foreign portfolio investment inflows and supporting the stability of the Rupiah exchange rate.

"Strengthening the Government's policy regarding the DHE SDA which will take effect from March 1, 2025, is predicted to support the stability of the Rupiah exchange rate in the future," he explained.