Bank Indonesia Maintains Firm Grip on Rupiah Stability

JAKARTA, Investortrust.id — Bank Indonesia or BI maintains rupiah stability on Wednesday, Jan 21, 2026 in Jakarta through coordinated interventions in offshore and domestic markets to counter global and domestic pressures on the currency.

The central bank carries out offshore intervention via non deliverable forward contracts and domestic intervention through spot market operations, domestic non deliverable forward instruments, and government bond purchases in the secondary market.

BI Governor Perry Warjiyo says rupiah liquidity expansion is also pursued by reducing outstanding Bank Indonesia Rupiah Securities.

“Rupiah liquidity expansion has been carried out through a reduction in SRBI positions from Rp 916.97 trillion at the beginning of 2025 to Rp 730.90 trillion at the end of 2025, and further down to Rp 694.04 trillion as of Jan 20, 2026,” Perry says during the virtual Board of Governors Meeting announcement.

He adds that BI also purchases government bonds as part of close coordination between monetary and fiscal policy.

“As of Jan 20, 2026, Bank Indonesia’s purchases of government bonds reached Rp 23.69 trillion, including Rp 13.21 trillion in the secondary market,” Perry says.

He says secondary market purchases are conducted in line with market mechanisms, in a measured and transparent manner, and remain consistent with monetary policy programs to safeguard economic stability and policy credibility.

Previously, BI disclosed that the rupiah weakened over the past two weeks due to domestic market perceptions.

“These perceptions relate to fiscal conditions and the process of nominating a deputy governor,” Perry says during the same meeting.

He stresses that the deputy governor nomination process complies with prevailing laws and governance standards and does not affect BI’s duties or authority.

“The duties and authorities of Bank Indonesia continue to be carried out professionally, supported by strong governance,” Perry says.

Other domestic factors monitored by BI include foreign capital outflows and large foreign exchange demand from corporations.

“There is significant foreign exchange demand from several corporations, including Pertamina, PLN, and Danantara,” Perry says.

He adds that global factors also weigh on the rupiah, including geopolitical developments and US tariff policies.

The currency also comes under pressure from elevated yields on two year and three year US Treasury bonds amid low expectations of a Federal Funds Rate cut, which strengthens the US dollar and triggers capital flows from emerging markets to the United States, Perry says.