Rupiah Continues to Weaken, Reaches Rp18,003 per US Dollar

Jakarta, KORANTRANSAKSI.com – The Indonesian rupiah has weakened further against the US dollar. According to Bloomberg data, as of 9:05 a.m. WIB on Thursday (June 4), the rupiah fell by 37 points, or 0.21 percent, to Rp18,003 per US dollar.

The government has taken steps to help stabilize the rupiah. Bank Indonesia (BI) has encouraged the public to limit foreign currency (forex) purchases without an underlying transaction and has promoted the use of local currencies through the Local Currency Transaction (LCT) framework in bilateral transactions. These measures aim to maintain the rupiah’s stability amid pressures from both global and domestic financial market developments.

Head of BI's Communications Department, Ramdan Denny Prakoso, stated:

“Starting June 2, 2026, Bank Indonesia has implemented a cash foreign exchange purchase threshold against rupiah without an underlying transaction of up to USD 25,000 per individual or entity per month.”

Ramdan explained that BI continues to optimize all available policy instruments to ensure the market mechanism functions properly. These efforts are also intended to maintain adequate foreign exchange liquidity and support financial market stability.

In addition, BI is expanding the use of local currencies in cross-border trade and investment transactions through the LCT framework. The initiative aims to reduce dependence on the US dollar and mitigate exchange rate volatility risks.

“This cooperation has been established with China, Japan, Malaysia, Thailand, South Korea, and the United Arab Emirates,” he said.

Furthermore, Ramdan emphasized that maintaining rupiah stability is not solely the responsibility of the central bank.

“Therefore, Bank Indonesia continues to strengthen coordination with the Government, the Financial Services Authority (OJK), banks, businesses, and market participants to ensure the proper functioning of market mechanisms and to enhance the resilience of the national economy’s external sector,” he concluded.(TIM)