Jakarta. Bank Indonesia will strengthen its foreign exchange (FX) transaction policies starting April 2026 to support the rupiah, as global pressures driven by Middle East tensions weigh on emerging market currencies.

Governor Perry Warjiyo said the measures come in response to recent depreciation of the rupiah, which has been hit by capital outflows and a stronger US dollar amid rising geopolitical risks.

“Strengthening FX transaction policies will take effect in April 2026 to support rupiah stability,” Perry said during a press conference on Tuesday.

The central bank will lower the monthly cap on FX purchases against the rupiah from $100,000 to $50,000 per customer.

At the same time, the central bank will increase the limit on Domestic Non-Deliverable Forward (DNDF) transactions from $5 million to $10 million per deal, and raise the cap on swap transactions to the same level.

Bank Indonesia will also tighten foreign exchange traffic reporting requirements, lowering the threshold for mandatory supporting documents on overseas transfers from $100,000 to $50,000.

Perry said the policy adjustments are part of the central bank’s broader strategy to stabilize the rupiah through a mix of monetary tools and capital flow management.

“Bank Indonesia is fully committed and will go all out to maintain exchange rate stability using all available monetary policy instruments,” he said.

The rupiah stood at around Rp 16,985 per US dollar on March 16, weakening about 1.29% from the end of February, in line with declines across other emerging market currencies.

Perry said the pressure reflects the broader impact of escalating conflict in the Middle East, particularly involving Iran and Israel, which has worsened global economic conditions and outlook.

The conflict has pushed oil prices higher and increased uncertainty in global financial markets, prompting investors to flock to safe-haven assets and strengthening the US dollar.

Despite the pressure, Indonesia’s external buffers remain solid. Foreign exchange reserves stood at $151.9 billion at the end of February 2026, slightly down from $154.6 billion in January, but still equivalent to more than six months of imports and external debt servicing, well above international adequacy standards.

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