By: Dewi Hesti
Amid the increasingly dynamic movements of the global economy, the Indonesian rupiah has also adjusted to various international developments, including the strengthening of the United States Dollar and shifts in global capital flows. This condition is a phenomenon experienced by many emerging-market currencies. Nevertheless, Indonesia’s economy continues to demonstrate strong resilience, supported by increasingly solid macroeconomic fundamentals, stable inflation, sustained economic growth, and a strengthening financial system.
Movements in the rupiah exchange rate essentially reflect the dynamics of an increasingly integrated global financial market. When investors show greater interest in dollar-based assets, some international capital flows naturally adjust their investment direction. However, this situation largely reflects changes in global sentiment rather than weaknesses in domestic economic fundamentals. National economic stability remains well maintained thanks to the productive performance of the real sector and consistent, adaptive economic policies.
In responding to these dynamics, the government, together with Bank Indonesia, continues to strengthen policy coordination to maintain exchange rate stability while sustaining market confidence. Various monetary policy instruments and market stabilization measures are implemented carefully so that the rupiah’s movement remains aligned with national economic fundamentals. This calm, measured, and coordinated approach has become key to maintaining economic stability while ensuring Indonesia continues to grow strongly amid global changes.
Minister of Finance Purbaya Yudhi Sadewa explained that regarding the potential economic pressure resulting from the conflict involving Iran, the United States, and Israel, the government will take policies capable of mitigating the impact of a surge in oil prices if they move beyond the control limits of the State Budget of Indonesia (APBN).
He also emphasized that the government is currently continuing efforts to maintain strong economic fundamentals so that investors are expected not to panic over current market movements. Various economic indicators also show that the national economy remains in good condition.
This policy approach reflects the government’s effort to maintain a balance between market stability and long-term economic sustainability. By strengthening policy coordination and keeping economic foundations solid, various external pressures are expected to be managed without triggering larger shocks.
The Acting President Director of the Indonesia Stock Exchange (BEI), Jeffrey Hendrik, also ensured that the exchange’s infrastructure systems and regulatory framework are ready to face stock market volatility caused by the escalation of conflict between the United States and Israel with Iran. He emphasized that current market volatility is largely driven by global external factors that are also affecting stock exchanges around the world.
This situation shows that the readiness of Indonesia’s capital market systems and governance plays an important role in maintaining stability amid global turbulence. Trading infrastructure, supervisory mechanisms, and regulatory frameworks prepared by the Indonesia Stock Exchange provide space for markets to continue functioning in an orderly manner even when facing external pressures. In times of global uncertainty, the preparedness of financial market institutions like this becomes a crucial foundation for maintaining investor confidence and ensuring that volatility does not escalate into excessive panic in the market.
The Chairman of the Indonesian Securities Analysts Association (PAEI), David Sutyanto, assessed that the view of monetary authorities that the current exchange rate does not fully reflect Indonesia’s economic condition has strong grounds. Several macroeconomic indicators show that the national economy remains on a relatively stable path. Bank credit distribution in January 2026 recorded annual growth of around 9.96 percent, while Indonesia’s economic growth in 2025 reached approximately 5.11 percent.
He also highlighted the government’s policy regarding Export Proceeds Foreign Exchange (DHE), which is considered capable of strengthening exchange rate stability. By requiring a portion of export earnings from natural resources to be retained longer within the domestic financial system, dollar liquidity in the domestic financial system has the potential to increase significantly.
Strengthening foreign exchange liquidity represents a strategic step in maintaining stability in the foreign exchange market. With more adequate dollar availability domestically, pressure on the exchange rate can be managed more effectively. This policy also strengthens national economic resilience when facing external shocks.
The government’s consistency in maintaining macroeconomic stability has become a key factor in easing market volatility. Measured policy responses, transparent communication, and strong inter-agency coordination play a major role in building market confidence. When the direction of government policy is clearly understood, the potential for panic amid market dynamics can be minimized.
In the long term, strengthening economic fundamentals remains the primary foundation for maintaining exchange rate stability. Efforts to promote industrial downstreaming, strengthen food and energy security, and expand the national export base will enhance Indonesia’s economic resilience in facing various external shocks.
Ultimately, pressure on the rupiah amid global dynamics should not be viewed excessively. Consistent, measured policies oriented toward strengthening economic fundamentals will help maintain national stability while ensuring that Indonesia can face global economic challenges with greater confidence.
The author is a domestic economic observer.