Bank Indonesia monitors rupiah amid market volatility, oil surge

Jakarta (ANTARA) - Bank Indonesia (BI) has reaffirmed its commitment to an active market presence to stabilize the rupiah, assuring investors that the central bank’s current intervention strategy remains unchanged despite heightened volatility driven by escalating geopolitical conflict in the Middle East.

Speaking in Jakarta on Monday, BI Governor Destry Damayanti said rupiah exchange rate movements continue to be dictated by daily supply and demand dynamics.

Consequently, BI continues to closely observe exchange rate developments while identifying the factors driving these fluctuations.

"Yes, we (BI) remain in the market. It depends on the day's supply and demand dynamics; we are definitely keeping a close watch on its movements," Destry said after attending the Danantara Technology Innovation Investment Forum (DTIIF) 2026.

Regarding potential changes to intervention strategies aimed at curbing rupiah volatility, Destry stated that no such changes are currently planned.

She noted the observed volatility remains within the scope of typical market dynamics and can continue to be monitored by the central bank.

"No, not at all. We are simply dealing with standard market volatility. We are continuously monitoring the situation and examining the root causes," she said.

The central bank's assurances come as the rupiah weakened by 0.30 percent to a level of Rp18,135 against the US dollar.

This movement occurred amid market concerns regarding the escalation of geopolitical conflicts in the Middle East.

According to Xinhua, the price of Brent crude oil surged to its highest level since late April, driven by growing fears over the escalating conflict in the region.

Brent crude oil for December delivery closed on Saturday (October 24) at US$116.72 per barrel, an increase of 3.14 percent. Meanwhile, West Texas Intermediate (WTI) crude oil for December delivery closed at US$103.27 per barrel, up 3.82 percent.

Related news: BI targets US$55 billion in local currency transactions in 2026

Translator: Bayu Saputra, Yashinta Difa
Editor: Bayu Prasetyo
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