Bank Indonesia Governor Destry Damayanti said swaps and domestic non-deliverable forward (DNDF) instruments had brought in about $8 billion to $9 billion through Oct. 19, as the rupiah firmed before the central bank’s next policy decision.
The Jakarta Interbank Spot Dollar Rate (JISDOR), Bank Indonesia’s rupiah-to-dollar reference, stood at Rp18,006 on Oct. 20, after Rp18,050 on Oct. 19. A lower rupiah-per-dollar reading means the rupiah strengthened against the U.S. currency. JISDOR is calculated from interbank spot trades.
The presidential office said Destry discussed further currency measures after an Oct. 19 meeting with President Prabowo Subianto. She said Bank Indonesia would review possible activity in spot trading and domestic DNDF and offshore non-deliverable forward (NDF) markets, alongside incentives to reduce hedging costs.
In September, Bank Indonesia expanded eligibility for lower hedging premiums beyond portfolio inflows to include foreign bank borrowing and foreign direct investment.
Financial Services Authority (OJK) Chair Friderica Widyasari Dewi said the regulator would improve access to market information, support trading liquidity and pursue rule violations more firmly, according to the presidential office.
The market backdrop includes MSCI’s review of Indonesia’s index status. On Oct. 15, MSCI began consulting on moving Indonesia out of its emerging-market grouping and into a standalone category. It cited difficulty assessing share ownership and suspected coordination in trading. In June, MSCI had raised a possible Frontier Market consultation if transparency and trading concerns persisted; the current process has not decided a reclassification. Feedback is due April 30, 2027, and MSCI plans to announce its decision by June 30, 2027.
Bank Indonesia kept its policy rate at 5.75% at its Sept. 22-23 meeting. The governors are scheduled to meet through Oct. 21, when the next decision is due.
