Bank Indonesia's executive director of currency and securities management, Erwin Huatapea, said in a statement on Thursday that the Bank of Indonesia continues to intervene through offshore unprincipal delivery forward foreign exchange, spot foreign exchange, and domestic unprincipal delivery forward foreign exchange transactions, and the purchase of government bonds in the secondary market. Bank Indonesia is strengthening coordination and communication with enterprises and market participants. The Indonesian rupee weakened due to market expectations that the US monetary policy would be tightened, concerns about global inflation and fiscal prospects, and the tense situation in the Middle East region and increased domestic foreign exchange demand. Domestic pressure was mainly due to foreign exchange demand from importers at the end of the third quarter and the outflow of portfolio capital from emerging market assets. Bank Indonesia will remain in the market to ensure that exchange rate trends are in line with fundamentals and remain stable. The Bank of Indonesia is strengthening market-oriented monetary policy operations, including increasing incentives for swaps and DNDF transactions, providing hedging transactions for offshore financing, and expanding the scope of eligible target transactions.

Bank Indonesia's executive director of currency and securities management, Erwin Huatapea, said in a statement on Thursday that the Bank of Indonesia continues to intervene through offshore unprincipal delivery forward foreign exchange, spot foreign exchange, and domestic unprincipal delivery forward foreign exchange transactions, and the purchase of government bonds in the secondary market. Bank Indonesia is strengthening coordination and communication with enterprises and market participants. The Indonesian rupee weakened due to market expectations that the US monetary policy would be tightened, concerns about global inflation and fiscal prospects, and the tense situation in the Middle East region and increased domestic foreign exchange demand. Domestic pressure was mainly due to foreign exchange demand from importers at the end of the third quarter and the outflow of portfolio capital from emerging market assets. Bank Indonesia will remain in the market to ensure that exchange rate trends are in line with fundamentals and remain stable. The Bank of Indonesia is strengthening market-oriented monetary policy operations, including increasing incentives for swaps and DNDF transactions, providing hedging transactions for offshore financing, and expanding the scope of eligible target transactions.