NusaBali reports that Bank Indonesia has pledged to use its full range of financial instruments and policies to stabilize the Rupiah against the strengthening US Dollar, following changes in monetary policy by the US Federal Reserve (The Fed). Bank Indonesia will also coordinate with the Central Government to control inflation.
The Executive Director of Communications for Bank Indonesia (BI), Ramdan Denny Prakoso, said BI will not remain silent amid global financial market turmoil. “Bank Indonesia will not remain silent. Bank Indonesia, as usual, will go all out to keep the rupiah stable with a tendency to strengthen,” Ramdan said in Jakarta on Tuesday, 07 July 2026.
Ramdan explained that the pressure on the Rupiah was triggered by hawkish signals from several Fed officials after the Federal Open Market Committee (FOMC) meeting in June 2026. The conditions pushed the US Dollar Index (DXY) up from around 95 in January to 101 by the end of June, the highest level in a year, putting added pressure on a number of currencies in developing countries.
To maintain Rupiah stability, BI continues round-the-clock intervention in both domestic and foreign financial markets. These actions include transactions in the spot market, non-deliverable forwards (NDFs), domestic non-deliverable forwards (DNDFs), as well as intensive communication with market actors.
Bank Indonesia – Bali Branch
Meanwhile, BI Governor Perry Warjiyo said his side was also strengthening coordination with the central and local governments to keep inflation under control amid rising global commodity prices. “We continue to coordinate centrally and regionally to keep inflation in check as global prices rise,” Perry said.
The BI’s Consumer Price Index (CPI) inflation rate in June 2026 stood at 3.34 percent year on year, and it remains within the acceptable target range of 2.5- 4.5 percent. The Central Bank believes inflation will remain under control throughout 2026 to 2027 thanks to the synergy of monetary policy, the government, and the strengthening of national food security programs.
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