Indonesia Central Bank in Market as Rupiah Approaches Record Low

Indonesia’s central bank said it is intervening in the foreign-exchange markets as the rupiah moves closer to a historic low on persistent fiscal concerns

“Bank Indonesia will continue to be present in the market to ensure that the rupiah exchange rate moves in line with fundamental values and healthy market mechanisms,” Executive Director Erwin Hutapea said in a mobile-phone message on Wednesday.

The rupiah is about 0.5% away from a record low it last hit in April as worries over the nation’s fiscal health resurfaced. Data last week showed the budget shortfall in 2025 almost breached the legal limit.

“Bank Indonesia will continue to optimize pro-market monetary policy instruments to strengthen the effectiveness of monetary policy transmission and maintain adequate liquidity,” Hutapea said.

READ: Indonesian Rupiah Falls for Sixth Day as Fiscal Worries Loom