TEMPO.CO, Jakarta - Bank Indonesia will run several interventions in the offshore (Non-Deliverable Forward/NDF) market to stabilize the rupiah due to the high global pressure. This step was decided at Bank Indonesia's Board of Governors meeting on Monday, April 7, 2025.
According to the Executive Director, Head of Bank Indonesia Communications Department, Ramdan Denny Prakoso, the reciprocal tariff policy announced by the United States government on April 2, 2025, and the response to the tariff retaliation policy by the Chinese government on April 4, 2025, have caused turbulence in the global financial market. "Pressure on the rupiah exchange rate has occurred in the offshore or Non-Deliverable Forward market amid the long holiday in the domestic market in the context of Eid al-Fitr 1446H," said Ramdan in his official statement on Monday, April 7, 2025.
Ramdan mentioned that Bank Indonesia's interventions in the offshore market are continuously conducted in Asia, Europe, and New York. In addition, they will also intervene domestically since early opening on April 8, 2025, by intervening in the foreign exchange market and purchasing Government Securities in the secondary market.
Furthermore, Ramdan stated that Bank Indonesia will optimize the rupiah liquidity instruments to ensure sufficient liquidity in the money market and domestic banking. "Bank Indonesia's series of measures is aimed at stabilizing the rupiah exchange rate and maintaining market participants' and investors' confidence in Indonesia," he said.
During the holiday period, the rupiah's value had reached Rp17,000 per US dollar in the foreign or NDF market. Then, on Friday, April 4, 2025, the rupiah touched Rp17,006 per US dollar. Implementing U.S. import tariffs was considered one of the triggers.
Forex analyst Ibrahim Assuabi mentioned several fundamental factors that influenced the strengthening of the dollar. "For example, the U.S. employment data came in better than previously expected," he said in an official statement on Sunday, April 6, 2025.
Additionally, according to Ibrahim, the dollar strengthened following the testimony of the U.S. Central Bank, or the Fed, on Friday night. The Fed indicated that a reduction in interest rates would not occur shortly. The current interest rate reduction is considered premature, especially in problematic global economic conditions and persistently high inflation.
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