Bank Indonesia and Ministry of Finance coordinate to stabilize Rupiah

Bank Indonesia (BI) and the Ministry of Finance are coordinating efforts to maintain national economic stability as the Rupiah faces pressure against the US Dollar. BI Senior Deputy Governor Aida S. Budiman stated that foreign exchange monetary operations are conducted while ensuring the adequacy and sustainability of Indonesia's foreign exchange reserves. These reserves, which stood at US$146.3 billion in the previous month, are managed to cover imports, government foreign debt payments, and to anticipate capital outflow risks.

To support market stability, BI is providing hedging incentives through Domestic Non-Deliverable Forward (DNDF) instruments and promoting Local Currency Transactions (LCT) with seven partner countries, including Malaysia, Singapore, Thailand, Japan, South Korea, China, and the United Arab Emirates.

Meanwhile, the Ministry of Finance has committed to maintaining fiscal discipline to support monetary efforts. Herman Saheruddin, Director General of Financial System Stability and Development, emphasized that while BI manages monetary policy independently, the government will focus on the sovereign side to ensure fiscal and monetary policies work in synergy to protect the economy.