US EditionIndonesia intervenes as rupiah falls to Asian crisis lows
- On March 25, 2025, the Indonesian rupiah weakened to 16,640 per dollar, reaching its lowest level since June 1998, prompting intervention by Indonesia's central bank .
- The rupiah's decline was triggered by growing anxieties surrounding Indonesian politics, government spending plans including a US$30 billion free lunch program, weak state revenues, capital flight, and global market uncertainties, including potential tariffs from the U.S.
- Bank Indonesia intervened in the spot currency, bond markets, and domestic non-deliverable forwards, employing triple intervention measures, as confirmed by BI officials Fitra Jusdiman and Edi Susianto, to stabilize the currency.
- According to Triwahyono, a senior official at BI, "The rupiah’s plunge was brought about by the global factor that is still filled with uncertainties," while Radhika Rao, an economist at DBS Bank, stated that BI had "entered the market boldly to maintain the balance of FX supply and demand in the market."
- The rupiah's slump, amounting to a 3-6% decline this year, has caused foreign investors to pull out over US$2 billion from the stock market, raising concerns about Indonesia's economic policies and potentially pushing the budget deficit closer to its legal limit, as the country rapidly loses its appeal to global investors.
23 Articles
23 Articles
Indonesia seeks to calm investors after stocks, rupiah slide
JAKARTA - Indonesian officials will seek to address concerns among investors and other key economic players about an economic downturn in Southeast Asia's biggest economy following a stock market selloff and currency slump, an official said on Thursday.
"In Indonesia, the current climate of political and fiscal uncertainty recalls the 1998 crisis"
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Bank Indonesia says ready to stabilise rupiah, which is near 27-year low
JAKARTA: The Indonesian central bank said it is ready to intervene to stabilise the rupiah, which on Wednesday stayed close to its lowest levels since 1998 even as officials said market sentiment was positive and economic fundamentals were resilient. © New Straits Times Press (M) Bhd
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