Jakarta. Bank Indonesia said it would continue efforts to reduce the country’s dependence on the US dollar by expanding local currency transaction cooperation with trading partners, as the rupiah weakened toward Rp 18,000 per dollar on Wednesday.

The rupiah traded at around Rp 17,954 against the US dollar, extending pressure on Indonesia’s currency amid ongoing global uncertainty.

Bank Indonesia spokesperson Ramdan Denny Prakoso said the use of local currencies in cross-border transactions helps mitigate exchange-rate volatility risks.

“The cooperation has currently been established with China, Japan, Malaysia, Thailand, South Korea, and the United Arab Emirates,” Ramdan said in a statement.

In addition to expanding local currency settlement arrangements, the central bank has also introduced a new threshold on dollar purchases.

Under the regulation, which took effect on June 2, individuals and entities may purchase up to $25,000 per month without additional underlying transaction documentation requirements.

Ramdan said pressure on the rupiah continues to be driven by unresolved global uncertainty, particularly developments related to tensions in the Middle East.

Seasonal demand for foreign currency has also contributed to the rupiah’s weakness, including demand linked to external debt repayments and dividend repatriation by foreign companies, while inflows of US dollars remain limited.

According to Bank Indonesia, maintaining rupiah stability requires coordination among multiple stakeholders, including the government, regulators, banks, businesses, and financial market participants.

The central bank said it would continue strengthening policy coordination to ensure orderly market mechanisms and preserve Indonesia’s external economic resilience.

Ramdan added that Bank Indonesia would remain active in financial markets through consistent and measured intervention efforts aimed at supporting external economic stability.

Add as a preferred source on Google +