JAKARTA - Bank Indonesia (BI) has stabilised the Rupiah (IDR) in the off shore (non deliverable forward/NDF) market amid global pressure due to the trade tariff war between the US and a number of trading partner countries. The intervention decision was the result of BI's Board of Governors Meeting (RDG) on Monday (7/4).

Ramdan Denny Prakoso, Executive Director of the Head of the BI Communication Department, said that the Rupiah exchange rate experienced pressure in the off shore (NDF) market during the Eid al-Fitr long holiday until early this week. ‘Intervention in the off shore (NDF) market is continuous in the Asian, European, and New York markets. BI will also intervene aggressively in the domestic market since the opening on 8 April 2025 by intervening in the forex market (Spot and DNDF) and purchasing SBN in the secondary market,’ he said in a press release.

According to him, BI will also optimise Rupiah liquidity instruments to ensure adequate liquidity in the money market and domestic banks. ‘Bank Indonesia's series of measures are to stabilise the Rupiah exchange rate and maintain the confidence of market players and investors in Indonesia,’ he said.

The Rupiah exchange rate approached IDR17,000 per US$ on Monday (7/4) morning, the lowest after US President Donald J. Trump announced reciprocal tariffs on Wednesday (2/4) US time. The Chinese government retaliated against the US policy by raising tariffs by 34% last week (4/4), triggering global financial market turmoil. (LK/LM)