TEMPO.CO, Jakarta - Senior Deputy Governor of Bank Indonesia, Destry Damayanti, stated that the institution will continue to intervene in the market to maintain the stability of the rupiah exchange rate amidst the escalating conflict in the Middle East. Based on data from Trading Economics, the rupiah weakened to Rp16,917 per U.S. dollar on Wednesday, March 4, 2026, at 09:35 AM local time.
"We will persistently carry out decisive intervention through Non-Deliverable Forward (NDF) transactions in the offshore market, spot transactions, and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market, accompanied by the purchase of government bonds in the secondary market," Destry said in an official statement on Wednesday, March 4, 2026.
Bank Indonesia recorded a 0.51 percent depreciation of the rupiah month to date. According to Destry, the depreciation of the rupiah is still in line with the regional conditions. She also mentioned that the foreign exchange reserves remained at US$154.6 billion at the end of January 1016. Furthermore, foreign capital inflow into the domestic financial market in 2026 was recorded at Rp25.7 trillion.
On Tuesday, March 3, 2026, the rupiah closed weaker at Rp16,872 per U.S. dollar. Director of PT Traze Andalan Futures, Ibrahim Assuaibi, stated that the depreciation of the rupiah was partly caused by the escalating conflict in the Middle East, where Israel attacked Lebanon and Iran attacked a tanker in the Strait of Hormuz. The Strait of Hormuz is a vital trade route.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said that the U.S. and Israel's war against Iran may take some time. "Analysts expect oil prices to remain high in the coming days while the market focuses on the impact of the escalating conflict in the Middle East," Ibrahim said in his statement on Tuesday, March 3, 2026.
Read: Analyst Projects Rupiah to Weaken Following US-Israel War on Iran
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