Bank Indonesia Governor Perry Warjiyo affirmed that the nation’s current foreign exchange reserves remain robust enough to underpin the central bank’s crucial efforts in stabilizing the rupiah’s exchange rate. As of the end of March 2026, these vital reserves were recorded at a substantial US$148.2 billion.
Despite a slight decrease in the foreign exchange reserve position compared to February, Governor Warjiyo emphasized that the total amount is still highly adequate for Bank Indonesia to conduct substantial interventions in the market. “A figure of US$148.2 billion is more than sufficient; we meticulously assess the intervention requirements,” Perry stated during a press conference following the regular meeting of the Financial System Stability Committee in Jakarta on Thursday, May 7, 2026.
Perry elaborated that foreign exchange reserves are strategically accumulated during periods of significant capital inflow into the country. These reserves are then judiciously deployed to counter capital outflows, or when foreign capital exits the domestic market, thereby cushioning the impact on the rupiah.
According to Perry, Bank Indonesia’s intervention measures to strengthen the exchange rate have been an ‘all-out’ effort, extending across various platforms: the domestic spot market, offshore Non-Deliverable Forwards (NDF), and Domestic NDFs. “We intervene in international markets—in Hong Kong, Singapore, London, and New York. This is far from business as usual; it’s an all-out commitment,” Perry emphasized, underscoring the central bank’s comprehensive strategy.
On Thursday, May 7, 2026, the rupiah’s exchange rate closed stronger, reaching Rp 17,333 per US dollar. Ibrahim Assuaibi, Director of PT Traze Andalan Futures, attributed this positive development to growing optimism surrounding the potential resolution of the conflict in the Middle East.
Domestically, Ibrahim highlighted that the rupiah’s trajectory is also influenced by the potential adjustment of fuel prices. “The prospect of fuel price adjustments is becoming more pronounced, driven by increasing fiscal pressures stemming from a surge in global energy prices, coupled with a subsidy burden that could potentially exceed the assumptions outlined in the State Budget (APBN),” he explained in a written statement on Thursday, May 7, 2026.
Editor’s Choice: Are Indonesia’s Foreign Exchange Reserves Safe?
Summary
Bank Indonesia Governor Perry Warjiyo has confirmed that the nation’s foreign exchange reserves are sufficiently strong to maintain the rupiah’s stability. As of March 2026, these reserves stood at US$148.2 billion, a figure considered more than adequate for intervention purposes. These reserves are built during capital inflows and used to manage outflows, thereby protecting the rupiah’s value.
The central bank’s strategy to strengthen the rupiah involves comprehensive market interventions across spot, NDF, and offshore markets. The rupiah closed stronger on May 7, 2026, at Rp 17,333 per US dollar, partly due to optimism about the Middle East conflict resolution. Domestically, potential fuel price adjustments also influence the rupiah, driven by rising global energy prices and subsidy pressures.