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View all search resultsBI tightens guardrails to curb rupiah’s slide
The rupiah extended its slide to 17,425 per US dollar on Tuesday, according to the Jakarta Interbank Spot Dollar Rate (JISDOR), underscoring Southeast Asia’s largest economy’s struggle to halt the currency’s decline since early this year.
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A clerk counts United States banknotes on May 22, 2024, at a money changer in
Jakarta. (Antara/Rivan Awal Lingga)
B
ank Indonesia (BI) has rolled out tighter safeguards, including slashing the cap on United States dollar purchases without supporting documents, and intensifying supervision of local firms with heavy dollar demand, in an effort to stem the rupiah’s steady decline.
Experts, however, warn the measures may only provide temporary relief, as the currency could remain under pressure if the government fails to restore confidence in its fiscal policy and oil prices stay elevated amid the ongoing Middle East conflict.
The rupiah extended its slide to 17,425 per US dollar on Tuesday, according to the Jakarta Interbank Spot Dollar Rate (JISDOR), underscoring Southeast Asia’s largest economy’s struggle to halt the currency’s decline since early this year. The rupiah opened 2026 at 16,800 to the dollar, breached the 17,000 mark in the first quarter and has now touched fresh lows not seen in decades.
The currency has continued to weaken despite repeated commitments and assurances from central bank and government officials that the country’s economic fundamentals are in good shape.
Following a meeting with President Prabowo Subianto at the Presidential Palace complex in Central Jakarta on Tuesday, which was also attended by Coordinating Economy Minister Airlangga Hartarto, Finance Minister Purbaya Yudhi Sadewa and Financial Services Authority (OJK) chairperson Friderica Widyasari Dewi, BI Governor Perry Warjiyo announced new steps to stabilize the currency.
The most direct intervention targets speculative dollar buying. Previously, individuals could purchase up to US$100,000 per month, but the limit was halved to $50,000 last month and is set to be cut again in the near future.
“We will further lower the limit to $25,000, so any purchase of that amount or more must be backed by an underlying document [showing the purpose of the purchase]. We will strengthen this requirement domestically,” Perry said.
