Jakarta. Bank Indonesia moved to reassure markets on Tuesday after the rupiah fell to a record low against the US dollar, pledging calibrated intervention to stabilize the currency amid heightened global uncertainty.

The rupiah closed at 17,105 per dollar, weaker than levels seen during the 1998 Asian financial crisis, when it hovered around 16,800.

Senior Deputy Governor Destry Damayanti said the central bank would optimize the use of its monetary policy instruments, including Domestic Non-Deliverable Forwards (DNDF) and offshore Non-Deliverable Forwards (NDF), alongside spot market operations.

“Amid extremely high global uncertainty, stability is Bank Indonesia’s top priority. We will optimize all available monetary instruments and policy measures to safeguard exchange rate stability,” Destry said in a statement.

She added that the central bank would maintain a consistent and measured presence in currency markets, covering spot transactions, DNDF, and offshore NDF operations.

Destry pointed to escalating geopolitical tensions in the Middle East as a key driver of pressure on the rupiah. However, she noted that the same dynamics have pushed up global commodity prices, which could provide some support for Indonesia as a major exporter.

“The impact of the Middle East conflict is twofold. Rising commodity prices and Indonesia’s position as an exporting country can generate positive effects for the economy, helping offset exchange rate pressures caused by the escalation,” she said.