BI CONTINUES To Optimize Foreign Exchange Management To Maintain Stability Of Rupiah Exchange Values

The Governor of Bank Indonesia, Perry Warjiyo. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) continues to strive to optimize foreign exchange management to maintain the stability of the rupiah exchange rate to support national economic growth.

"We believe that the exchange rate will strengthen and we will continue to maintain it, and of course we will continue to optimize foreign exchange traffic management for the stability of our exchange rate, for our external stability, for our economic stability," said BI Governor Perry Warjiyo at the launch of the 2022 Bank Indonesia Transparency and Accountability Report (LTABI) in Jakarta, quoted from Antara, Monday, January 30.

BI made several breakthroughs, including BI regulations to mobilize the results of foreign exchange and operation twist or the sale or purchase of Government Securities (SBN) in the secondary market to maintain the stability of the rupiah exchange rate.

"Bank Indonesia has issued a Bank Indonesia regulation to mobilize foreign exchange results, foreign exchange traffic management," he said.

The regulation is Bank Indonesia Regulation Number 24/18/PBI/2022 concerning the Second Amendment to Bank Indonesia Regulation Number 21/14/PBI/2019 concerning Foreign Exchange of Export Results and Import Payment Foreign Exchange, which will take effect on November 30, 2022.

The issuance of the regulation was motivated to support the implementation of Bank Indonesia's monetary policy in strengthening the stability of the rupiah exchange rate through strengthening the regulation of export earnings foreign exchange (DHE) to ensure that DHE, especially from natural resource commodities (SDA), can be placed in the domestic financial market on an ongoing basis.

"In normal times, of course, we will allow the market mechanism. But with the turmoil, Bank Indonesia will not hesitate to intervene in stabilizing the rupiah exchange rate, that is a breakthrough," he said.

BI will also continue the sale/purchase of SBN in the secondary market to strengthen the transmission of the BI benchmark interest rate (BI7DRR) in increasing the attractiveness of SBN yields for the entry of foreign portfolio investors in order to strengthen the stabilization of the rupiah exchange rate.

Bank Indonesia memperkuat stabilisasi nilai tukar rupiah sebagai bagian dari upaya pengendalian inflasi, terutama inflasi barang imported inflation (imported inflation), melalui intervensi di pasar valas dengan transaksi spot, Domestic Non Deliverable Forward (DNDF), serta pembelian/penjualan Sejir Negara (SBN) di pasar sepenaris.

In the future, Bank Indonesia projects that the rupiah will continue to strengthen in line with the better economic prospects and therefore will encourage further decline in inflation.

The rupiah exchange rate transacted between banks in Jakarta on Monday morning (30/1) strengthened 11 points or 0.07 percent to IDR 14,975 per US dollar compared to the position at the close of the previous trade on Friday (27/1) IDR 14,986 per US dollar.