The rupiah came under pressure during Friday, August 29, 2025 protests, weakening to Rp16,509 per US dollar, but gradually recovered and closed stronger on Monday, September 1, 2025 afternoon at Rp16,428 per dollar after opened Rp16,259 per dollar earlier in the day.

The Indonesian Central Bank (BI) quickly responded to the rupiah’s volatility by preparing stabilization measures. Erwin Gunawan Hutapea, Head of BI’s Monetary Management and Securities Department, said the central bank would remain active in the market to maintain exchange rate stability and ensure adequate rupiah liquidity.

“Bank Indonesia is present in the market to ensure the rupiah moves in line with its fundamentals through a well-functioning market mechanism,” Erwin said as quoted in a statement on Monday, September 1, 2025.

He stressed that the first step is to strengthen stabilization measures, including offshore Non-Deliverable Forward (NDF) intervention, as well as domestic market interventions through spot transactions, Domestic NDF (DNDF), and secondary market purchases of government securities (SBN).

BI is also safeguarding liquidity by providing access to banks. “This is done through repo transactions, FX swaps, secondary market purchases of government securities, and lending or financing facilities,” Erwin added.

The rupiah closed on Monday 71 points stronger at Rp16,428 per US dollar. Currency and commodity analyst Ibrahim Assuaibi said the rupiah has potential to strengthen further in the near term.

“For tomorrow’s trading, the rupiah is expected to fluctuate but close stronger in the range of Rp16,370 to Rp16,430 per dollar,” Ibrahim predicted.

Doo Financial Futures analyst Lukman Leong also forecasted further gains, supported by BI’s stabilization efforts after the rupiah was pressured by political uncertainty and nationwide protests.

“BI’s intervention could help reverse the rupiah’s losses. Today, the rupiah traded between Rp16,400 and Rp16,550 per dollar,” Lukman said.