Jakarta, Indonesia – April 7, 2025 – In English news today in Indonesia, Indonesia's central bank, Bank Indonesia, has announced that it will intervene "aggressively" in the foreign exchange markets when they reopen on Tuesday, April 8, for the first time since the imposition of new U.S. tariffs. The move comes as the Indonesian rupiah has been appreciating under increasing pressure, close to its lowest level since the 1998 financial crisis.
Indonesian financial markets have been shut down since March 28 for holidays and will resume on Tuesday. The rupiah was weakening beforehand during the holiday break, and the majority of that weakness was from the global impact of rising U.S.-China trade tensions and the latest tariffs the U.S. has levied on China, which have impacted global markets, including Indonesia.
In a statement, Bank Indonesia asserted that its intervention would be focused on the spot and non-deliverable forward markets, and secondary bond markets. The central bank also revealed that it had intervened offshore in Asian, European, and New York markets ahead of time to stabilize the currency.
"Bank Indonesia's actions are series in a move to stabilize the exchange rate of the rupiah and maintain the confidence of market players and investors in Indonesia," the release stated.
As one component of its measure to strengthen the rupiah, Bank Indonesia will further maximize instruments of rupiah liquidity so that there is adequate liquidity in the money market and with local banks. All these are aimed at helping maintain Indonesian financial stability afloat and reduce the volatility caused by disruptions in international trade.
The news is part of ongoing Indonesia news today in English, which highlights the country's efforts to manage external economic pressures. The opening of markets on Tuesday will be anxiously watched, as Bank Indonesia's forward thinking will play a decisive role in stabilizing the currency and halting further economic uncertainty.
With the world economy under siege by uncertainty regarding global trade tensions, Bank Indonesia's move will be critical in maintaining investor confidence and protecting the economic outlook for Southeast Asia's largest economy.