Jakarta. Demand for foreign currency in Indonesia has risen partly due to spending needs by state-owned enterprises and the sovereign wealth fund Danantara, contributing to capital outflows and pressure on the rupiah, Bank Indonesia Governor Perry Warjiyo said on Wednesday.

“At the start of 2026, there was a net outflow of $1.6 billion, influenced by global and domestic factors, including large foreign currency requirements from Pertamina, PLN, and Danantara,” Perry said at a press conference in Jakarta.

The increased demand for foreign exchange has contributed to the recent weakening of the rupiah. Perry said Bank Indonesia stands ready to intervene in the market, including through the use of foreign exchange reserves, to stabilize the currency.

“Bank Indonesia will not hesitate to intervene in large amounts. Our foreign exchange reserves are ample and more than sufficient to stabilize the rupiah,” he said.

Indonesia’s foreign exchange reserves stood at $156.5 billion in December, equivalent to 6.4 months of imports, or 6.3 months of imports and government external debt servicing. The level is well above the international adequacy benchmark of around three months of imports, central bank data show.

Perry’s remarks came a day after the rupiah hit a record low of Rp 16,988 per dollar. On Wednesday, the currency rebounded, moving away from the Rp 17,000 per dollar level.

The central bank governor said he was confident the rupiah would stabilize and strengthen in the near term.

“We believe the rupiah will remain stable and even tend to strengthen, supported by strong economic fundamentals, including attractive government bond yields, low inflation, and improving economic prospects,” Perry said.