Jakarta. The rupiah remains undervalued and below its fair value, leaving significant room for appreciation as the country’s economic fundamentals remain strong, Bank Indonesia Governor Perry Warjiyo said on Wednesday.

Speaking at a press conference following the central bank’s Board of Governors meeting in Jakarta, Perry said Indonesia’s economic resilience had remained intact despite escalating geopolitical tensions globally.

He cited solid economic growth, controlled inflation, and competitive returns on domestic financial instruments as key supporting factors.

“We affirm that the rupiah’s current exchange rate is undervalued compared with its fundamental value. The rupiah will remain stable and tends to strengthen, supported by economic fundamentals,” Perry said.

To curb volatility stemming from heightened uncertainty in global financial markets, Bank Indonesia has intensified its foreign exchange market interventions.

The measures include intervention in offshore Non-Deliverable Forward (NDF) markets as well as the Domestic Non-Deliverable Forward (DNDF) market.

In addition, beginning in April 2026, the central bank adjusted foreign exchange transaction thresholds to strengthen liquidity and attract foreign capital inflows.

As of April 21, 2026, the rupiah stood at Rp 17,140 per US dollar, weakening 0.87% point-to-point from the end of March.

“Going forward, Bank Indonesia believes the rupiah will remain stable and tend to appreciate, supported by BI’s commitment, attractive yields, and favorable economic growth prospects,” Perry said.

To respond to the impact of conflict in the Middle East, Bank Indonesia is also strengthening coordination with the Finance Ministry.

The main focus of that coordination is to mitigate risks from a stronger US dollar, rising US Treasury yields, and potential capital outflows, he added.