JAKARTA - President Prabowo Subianto has approved seven strategies for Bank Indonesia (BI) to strengthen and stabilize the rupiah exchange rate amid pressure on weakening in recent times.
Governor of BI Perry Warjiyo said the approval was conveyed in a limited meeting with the Financial System Stability Committee (KSSK) at the Merdeka Palace, Tuesday, May 5 evening.
"We reported to the President and he approved and strengthened the seven important steps taken by Bank Indonesia to make the rupiah stronger and more stable in the future," said Perry, quoted by Antara, Wednesday, May 6.
One of the main strategies is to strengthen interventions in the foreign exchange market, both domestically and abroad. BI ensures that foreign exchange reserves are in adequate condition to maintain rupiah stability.
In addition, BI also focuses on strengthening the flow of capital inflows through the Rupiah Securities instrument of Bank Indonesia (SRBI) and strengthening coordination with the Ministry of Finance to maintain the balance of foreign funds.
Fiscal and monetary coordination is also strengthened, including through the purchase of Government Securities (SBN) in the secondary market. To date, BI has recorded SBN purchases worth Rp. 123.1 trillion as part of efforts to maintain financial market stability.
The next strategy is to keep banking and money market liquidity loose, and to implement restrictions on the purchase of US dollars domestically. The purchase limit without underlying is lowered from 100,000 US dollars to 50,000 US dollars per person per month, and further tightening is prepared up to 25,000 US dollars.
BI also strengthened intervention in the offshore market by allowing domestic banks to trade non-deliverable forwards (NDF) abroad to increase foreign exchange supply.
Finally, supervision of banking and corporate activities is tightened through coordination with the Financial Services Authority (OJK), especially for parties with high dollar purchase activities.
"We coordinate with OJK to ensure that the stability of the financial system is maintained," said Perry.
These steps are expected to be able to maintain market confidence and strengthen the fundamentals of the rupiah amid global dynamics.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
