BI Forex Market Intervention Reduces Rupiah Fluctuations

By : Herry Barus And Aldo Bella Putra | Monday, August 13 2018 - 15:00 IWST

Bank Indonesia
Bank Indonesia

INDUSTRY.co.id - Jakarta - Bank Indonesia said on Monday afternoon that it was intervening in the forex market to reduce global pressure that weakened the rupiah exchange rate to a new psychological level of Rp. 14,600 per US dollar.

Executive Director of the Head of the Monetary Management Department BI Nanang Hendarsah told Antara in Jakarta on Monday (08/13/2018), said the Central Bank continued to watch the global economic pressures coming. To anticipate the pressure that could be even stronger, BI is preparing to carry out dual interventions with stabilization in the Government Securities (SBN) market.

"BI is stabilizing on the forex market. So far (pressure) can still be controlled, we are trying," said Nanang.

To stabilize the domestic financial market, BI usually intervenes in the forex market, and buys Government Securities (SBN). This is a step often referred to by BI as a dual intervention.

In the spot market at the opening of trading this Monday, the rupiah weakened to 157 points to Rp14,643 compared to the previous position of Rp14,486 per US dollar.

At the Jakarta Interbank Spot Dollar Rate (Jisdor) reference rate announced by BI this Monday, one US dollar is equivalent to Rp. 14,583 per US dollar or shows a rupiah depreciation of 146 points compared to Friday (10/8) which was Rp. 14,437 per US dollar.

The development of the spot market this Monday afternoon at 11:45 WIB, the rupiah traded at IDR 14,612 per US dollar.

Separately, Economist Samuel Aset Manajemen Lana Soelistianingsih said the negative sentiment from Turkey's economic turmoil was one of the factors that made the rupiah plummet, along with other countries' currencies in the world.

Turkey is facing a financial crisis and is a concern of global investors because of the increasingly strong intervention of Turkish President Erdogan to the Turkish Central Bank, and deteriorating relations with the United States.

"The Turkish lira exchange rate recorded a sharp depreciation. The Turkish effect is feared to make the US dollar strengthen and vice versa, other emerging markets including the rupiah will weaken," said Lana.

News Comment

Today's Industry

Harman Professional Experience Center, located at Desound Melawai, South Jakarta. (Photo: the Company's PR)

Rabu, 09 Juli 2025 - 08:55 WIB

Indonesia's First Harman Professional Experience Center Opens in Jakarta

PT Inti Megah Swara (IMS Indonesia) announces the grand opening of the country's first Harman Professional Experience Center, located at Desound Melawai, South Jakarta.

One of Apartments offered by Savyavasa and Permata Bank Launch Exclusive Foreign Mortgage Program

Senin, 09 Juni 2025 - 14:22 WIB

Savyavasa and Permata Bank Launch Exclusive Foreign Mortgage Program

Savyavasa, a luxury residential development by Swire Properties and JSI Group under PT Jantra Swarna Dipta, in collaboration with Permata Bank, presents a new solution for foreign nationals…

President Prabowo in Thailand

Rabu, 21 Mei 2025 - 10:09 WIB

Indonesia, Thailand Sign MoU on Health Sector, Focusing on Global Capacity, Collaboration

As a part of President Prabowo Subianto’s official visit to Thailand, both countries signed a Memorandum of Understanding (MoU) on health sector, in an effort to strengthen bilateral cooperation…

President Prabowo in Thailand

Rabu, 21 Mei 2025 - 10:06 WIB

Indonesia, Thailand Deepen Cooperation on Security, Trade, and Regional Stability

resident Prabowo Subianto has reaffirmed Indonesia’s strong commitment to deepening bilateral relations with Thailand during the meeting with Thailand’s Prime Minister Paetongtarn Shinawatra…

SD Darmono CEO Jababeka Group with Boediman Widjaja CEO JOE Green Group

Selasa, 20 Mei 2025 - 12:44 WIB

Boediman Widjaja's Technology Ready to be Adopted in Jababeka Industrial Estate (KIJA)

In an exclusive seminar entitled "A Great Step: Boediman Widjaja Story - Going from Indonesia, Thriving in Singapore" held at the President Lounge, Menara Batavia, Boediman Widjaja, Founder…