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Bank Indonesia vows rupiah stability after US, China tariff announcements
The central bank said in a statement it would optimise interventions in the spot, domestic non-deliverable forward and bond markets to ensure adequate foreign exchange liquidity.
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Indonesia's Central Bank Governor Perry Warjiyo speaks during a press conference at Bank Indonesia's headquarters in Jakarta, Indonesia, On Wednesday, January 15, 2025. (Reuters/Willy Kurniawan)
B
ank Indonesia said on Saturday it was committed to keeping the rupiah currency stable after US and Chinese tariff announcements resulted in market uncertainties.
The central bank said in a statement it would optimise interventions in the spot, domestic non-deliverable forward and bond markets to ensure adequate foreign exchange liquidity.
The country's capital markets will reopen on Tuesday after Idul Fitri holidays.
On Friday, Indonesia's main business lobby has backed the government to negotiate better terms with Washington after US President Donald Trump imposed hefty tariffs on goods from the country.
Trump announced sweeping, harsher-than-expected global levies this week, punishing allies like security partner Indonesia for running a trade surplus with the economic superpower.
The escalation saw Indonesia hit with an additional 32 percent levy on its goods, higher than the baseline 10 percent for all countries and more than Southeast Asian neighbours Malaysia, Singapore and the Philippines.
Foreign Ministry said it would send a high-ranking delegation to Washington to negotiate a better deal.
Chief economic affairs minister Airlangga Hartarto called for the 10-member Association of Southeast Asian Nations (ASEAN) to coordinate its response to the tariffs.
"Synchronization between ASEAN countries is needed, because of the 10 ASEAN countries, all are affected by the US reciprocal tariff policy, so it is necessary to collectively build communication and engagement with the US Government," he said in a statement on Friday.
The tariffs were just "an opening statement", said Indonesian Chamber of Commerce and Industry (Kadin) chair Anindya Novyan Bakrie in a statement late Thursday.
"This means the door for negotiation is still open. Intensive communication with the US government... is the right move."
Indonesian furniture exports, of which 53 percent ship to the United States, would be badly impacted, local media reported citing Abdul Sobur, head of the Furniture and Craft Association.
