Rupiah tumbles; BI to intervene

Indonesia’s rupiah slid past 17,300 per US dollar on Thursday, its weakest level on record, and Bank Indonesia said it would intensify market intervention. (bloomberg.com) The currency fell as much as 0.8% to 17,310 per dollar in Asian trading on April 23, putting it on track for its biggest one-day drop since September. Indonesia’s benchmark stock index fell more than 1%, and the 10-year government bond yield rose nine basis points to 6.70%. (bloomberg.com) Deputy Governor Senior Destry Damayanti said Bank Indonesia would “continue to increase” intervention in offshore non-deliverable forwards, the domestic spot market, and domestic non-deliverable forwards. She said the rupiah’s year-to-date decline was 3.54%, broadly in line with other regional currencies under pressure from global uncertainty. (kompas.com) Bank Indonesia held its benchmark BI-Rate at 4.75% on April 22 after a two-day policy meeting, keeping the deposit facility at 3.75% and the lending facility at 5.50%. The central bank’s homepage listed March inflation at 3.48% and March foreign reserves at $148.15 billion. (bi.go.id) The pressure comes from oil as much as from currencies. Indonesia still imports fuel, so higher crude prices raise import costs, strain the trade balance, and make investors more wary of rupiah assets. (bloomberg.com) The move also pushes the exchange rate beyond the range used to draft Indonesia’s 2026 budget. Government and parliament approved a 2026 budget assumption of Rp16,500-Rp16,900 per US dollar, well below Thursday’s market levels. (en.antaranews.com) Coordinating Economic Minister Airlangga Hartarto said the government was monitoring the currency but would not “be reactive every day.” He said the rupiah’s drop reflected global dynamics and said maintaining the exchange rate was Bank Indonesia’s responsibility. (tempo.co) For now, Bank Indonesia is trying to defend the rupiah without raising rates again. Thursday’s test is whether intervention, reserves, and a steady 4.75% policy rate can calm markets before the slide feeds more directly into prices and funding costs. (bi.go.id)