Rupiah Falls Sharply, Bank Indonesia Deploys Full Arsenal to Defend Currency
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JAKARTA, Investortrust.id — Bank Indonesia has reaffirmed its commitment to stabilizing the rupiah after the currency suffered sharp losses in recent days. On Thursday, Sept 25, 2025, the rupiah closed at Rp 16,752 per US dollar, weakening by 70 points or 0.43 percent over the week.
Governor Bank Indonesia Perry Warjiyo said the central bank has used all available tools to safeguard the rupiah, including interventions in the domestic spot market, domestic non-deliverable forward (DNDF) contracts, and purchases of government bonds in the secondary market. He added that the central bank also intervened in offshore markets in Asia, Europe, and the United States through non-deliverable forward (NDF) instruments.
"Bank Indonesia is using all instruments boldly, continuously and in multiple markets to maintain rupiah stability in line with its fundamental value," Perry said in a statement on Friday, Sept 26, 2025. He urged financial market participants to help maintain a conducive environment to ensure stability.
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Market analysts said speculative activity in derivative markets has exacerbated volatility. Sutopo Widodo, President Commissioner of HFX Internasional Berjangka, noted that NDF and DNDF contracts allow investors to bet on rupiah movements without actually holding the currency, often amplifying swings that do not reflect real economic conditions.
State-Owned Banks Raises Dollar Deposit Rates
The pressure on the rupiah has prompted responses from both state-owned banks and the government. On Thursday, Sept 25, 2025, PT Bank Negara Indonesia Tbk, or BNI, announced that it raised its counter rate for US dollar deposits to 4 percent. The move, wchich also conducted simultaneously by other state owned banks, Bank Mandiri, Bank Rakyat Indonesia and Bank Tabungan Negara, is intended to attract foreign currency back into the domestic banking system.
BNI President Director Putrama Wahju Setyawan said the higher deposit rates aim to provide more competitive returns, encouraging Indonesians who currently hold funds abroad to bring them home. He added that the bank has made dollar deposit services accessible through its digital platform, wondr by BNI, and will leverage its overseas offices to facilitate international inflows.
"This is part of our commitment to support rupiah stability and reinforce Indonesia as a safe and competitive investment destination," Putrama said.
Government Prepares Dollar Retention Incentives
Earlier, on Friday, Sept 19, 2025, Finance Minister Purbaya Yudhi Sadewa revealed that the government was finalizing a market-based incentive scheme to encourage Indonesians to keep their dollar savings in the country. Speaking after a meeting with President Prabowo Subianto at the Merdeka Palace, he said the program is expected to strengthen foreign exchange reserves and expand the supply of dollars in domestic banks.
"We are working on attractive incentives so Indonesians do not need to send their dollars abroad. If we can keep these flows at home, our reserves will be stronger, and banks will have more dollar liquidity," Purbaya said.
He emphasized that the additional dollar supply would help finance strategic government projects with competitive interest rates, reducing reliance on external funding.