Bank Indonesia (BI) Governor Perry Warjiyo has expressed confidence that the stability of the Indonesian rupiah will remain secure, despite ongoing global economic pressures. He shared this optimistic outlook following a three-hour closed-door meeting with President Prabowo Subianto at the Merdeka Palace in Jakarta on Monday (May 18).
When asked by reporters about the current currency climate, Perry offered a brief but firm assurance: “I am confident that the rupiah remains stable.”
The high-level meeting involved several key figures, including Finance Minister Purbaya Yudhi Sadewa, Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Investment and Downstreaming Rosan Roeslani, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, and Minister of Higher Education, Science, and Technology Brian Yuliarto.
The central bank’s optimism comes as the rupiah has faced consistent downward pressure, trading near the 17,700 level against the U.S. dollar. According to Bloomberg data, the currency closed the day down by 0.4% at 17,666 per U.S. dollar. Throughout the session, the rupiah fluctuated between 17,627 and 17,684 against the greenback.
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Government Prepares Rp 2 Trillion Bond Market Intervention
Finance Minister Purbaya Yudhi Sadewa revealed that President Prabowo had inquired about the rupiah during the meeting. However, Purbaya emphasized that the discussion was not centered solely on the currency, but rather on the broader, robust state of the Indonesian economy.
“The President asked about the rupiah, but the underlying economic conditions are excellent. Our economic foundations are genuinely strong,” Purbaya noted. The Finance Minister highlighted that the government intends to sharpen its communication strategy to ensure that market perceptions and investor confidence remain positive moving forward.
Addressing the volatility, Purbaya, who served as the Chairman of the Board of Commissioners of the Indonesia Deposit Insurance Corporation (LPS) from 2020-2025, confirmed that the government has a clear strategy to dampen further depreciation. Central to this plan is the mobilization of the Bond Stabilization Fund (BSF), with plans to inject up to Rp 2 trillion daily into the bond market.
This intervention is designed to absorb government bonds (SBN) or debt securities offloaded by foreign investors. “I have instructed an injection of Rp 2 trillion every day, and we will monitor the situation closely to determine the necessary scale of our involvement,” Purbaya said. “I have Rp 420 trillion in cash reserves that can be deployed to support the market.”
Summary
Bank Indonesia Governor Perry Warjiyo has expressed confidence in the stability of the Indonesian rupiah, following a high-level meeting with President Prabowo Subianto and key economic ministers. Despite the currency trading near the 17,700 level against the U.S. dollar, officials maintained that Indonesia’s economic foundations remain robust and resilient against global pressures.
To address ongoing volatility, the government plans to implement a strategic intervention in the bond market by utilizing the Bond Stabilization Fund. Finance Minister Purbaya Yudhi Sadewa announced that authorities are prepared to inject up to Rp 2 trillion daily to absorb government bonds sold by foreign investors, backed by significant cash reserves to ensure market confidence.
