Bank Indonesia intervenes in offshore and onshore markets to stabilize currency.

Bank Indonesia intervenes in offshore and onshore markets to stabilize currency.

Indonesia's central bank, Bank Indonesia (BI), has taken proactive measures to stabilize the rupiah amid global uncertainties. The latest intervention strategies involve both offshore and onshore markets, aiming to maintain macroeconomic stability and support economic growth. On June 17, 2025, BI Governor Perry Warjiyo announced that the benchmark interest rate would remain unchanged at 5.50 percent, reflecting a cautious stance in response to persistent global risks [1].

One of the key measures implemented by BI is the continuation of non-deliverable forward (NDF) transactions offshore and spot and domestic NDF instruments onshore. This intervention is supported by secondary market purchases of government bonds (SBN) to stabilize the currency [1]. These measures are part of a broader strategy to maintain liquidity and encourage capital inflows, which have been crucial in supporting the rupiah's stability.

Additionally, BI is strengthening its monetary operations to enhance interest rate transmission and maintain liquidity in both money and foreign exchange markets. This includes optimizing Bank Indonesia Rupiah Securities (SRBI) auctions and secondary bond purchases [1]. These efforts aim to deepen financial markets and facilitate international transactions.

Bank Indonesia's strategy also encompasses loan rate transparency, with a focus on expanding assessments of basic lending rate disclosures by sector. This transparency is designed to align with liquidity incentive policies and support the overall financial stability of the country [1].

Furthermore, BI is accelerating the rollout of QR code-based cross-border payments with Japan and China. This initiative aims to facilitate international transactions and enhance the efficiency of cross-border payment systems [1].

In the context of domestic operations, BI is reinforcing its policy mix, including monetary, macroprudential, and payment system measures. These policies are coordinated with the government's fiscal and real sector stimulus, including the implementation of the Asta Cita national agenda [1]. This coordinated approach aims to address external challenges by strengthening household consumption and investment.

The central bank expects economic growth to improve in the second half of 2025, forecasting full-year GDP growth between 4.6 and 5.4 percent. The balance of payments is expected to remain solid, supported by a current account deficit of only 0.5 to 1.3 percent of GDP and sustained capital inflows [1].

References:

[1] https://www.jakartadaily.id/macro-economy/16215372860/indonesias-central-bank-holds-key-rate-at-550-percent-to-safeguard-stability-amid-global-uncertainty