Bank Indonesia Intervenes to Stabilize Rupiah Amid Protest-Linked Weakness

The Indonesian rupiah has shown signs of stabilization and potential strengthening against the U.S. dollar, with Bank Indonesia (BI) aiming to bring the exchange rate down to around Rp16,300 per dollar despite recent social unrest. BI Governor Perry Warjiyo emphasized the central bank's commitment to maintaining financial stability through coordinated efforts with domestic authorities and interventions in foreign exchange markets. The rupiah's fluctuations have been influenced by external factors, including uncertainty surrounding U.S. President Trump's tariffs after a court ruling and political tensions involving the Federal Reserve. Domestically, Indonesia's trade balance surplus and positive economic indicators support the rupiah's resilience. Additionally, BI attributes the controlled inflation rate of 2.31 percent in August 2025 to consistent monetary policies and collaborative efforts through initiatives like the National Movement for Controlling Food Inflation (GNPIP). These combined efforts aim to sustain economic stability amid both global uncertainties and domestic challenges.