BI Deploys All Monetary Tools to Support Rupiah Stability

Bank Indonesia (BI) has affirmed its readiness to deploy all monetary policy tools to maintain the stability of the Indonesian Rupiah. Governor Perry Warjiyo highlighted that the rupiah's fluctuations are influenced by multiple factors, including global economic uncertainties and domestic economic conditions. Warjiyo stated that the effective utilization of monetary policy is crucial for balancing market stabilization with sustained economic growth. BI intends to continue intervening in the foreign exchange market to curb excessive volatility of the rupiah. Furthermore, the central bank indicated its willingness to adjust policy rates if necessary, aiming to prevent significant depreciation of the rupiah while striking a balance between inflation control and economic growth support. The BI Governor emphasized that Indonesia's economic fundamentals remain robust and that BI's firm commitment to stabilizing the rupiah will foster confidence among market participants. Indonesia's economy tends to be sensitive to global economic trends. In particular, US monetary policy and geopolitical risks can easily impact the rupiah, as an emerging market currency. BI's proactive intervention and flexible policy management are expected to mitigate the pressure on the rupiah from these external factors and contribute to domestic economic stability. Collaboration with the government is also deemed important, with a strategy to achieve overall economic stabilization through the coordination of fiscal and monetary policies.