Bank Indonesia to use all monetary instruments to stabilise rupiah, deputy governor says

Indonesia's central bank will use all its monetary instruments to stabilise the rupiah currency, Deputy Governor Destry Damayanti said in a parliamentary hearing on Tuesday, after the currency hit a fresh four-year low.

The rupiah touched 16,300 per dollar earlier on Tuesday, its weakest since 2020, before paring some losses. The currency has come under pressure in recent days as investors reacted to U.S. data that might impact the start of the Federal Reserve's monetary easing.

"Bank Indonesia will optimise all monetary instruments that we have to stabilise the rupiah exchange rate," Destry told the hearing.

They include currency intervention in the spot foreign exchange and domestic non-deliverable forward markets, as well as BI purchasing government bonds sold by foreign investors if necessary, and other measures, she said.

BI delivered a surprise interest rate hike in April in response to a drop in the rupiah against the U.S. dollar. It kept policy rates unchanged in May, saying rates were at levels adequate to keep inflation within target and ward off imported inflation.

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