The Bank of Indonesia is intervening in the foreign exchange and bond markets to stabilize the Indonesian rupiah, which has fallen to a record low. Bank Indonesia's executive director of currency and securities management Erwin Huatapea said in a statement on Thursday: “The Bank of Indonesia continues to stay in the market to maintain the stability of the Indonesian rupiah exchange rate and ensure that its trend is in line with fundamental values.” The Bank of Indonesia intervenes in the offshore no-principal delivery forward foreign exchange market, domestic no-principal delivery forward foreign exchange, and spot foreign exchange markets, and buys government bonds in the secondary market. The main reason for the weakening of the Indonesian rupiah is that the market expects the Federal Reserve to raise interest rates next month, thereby boosting the yield of the US dollar and US bonds, leading to capital outflow from emerging markets. On the domestic side, the risk of MSCI's potential downgrade, domestic economic dynamics, and an increase in foreign exchange demand at the end of the year also put pressure on the Indonesian rupiah.

The Bank of Indonesia is intervening in the foreign exchange and bond markets to stabilize the Indonesian rupiah, which has fallen to a record low. Bank Indonesia's executive director of currency and securities management Erwin Huatapea said in a statement on Thursday: “The Bank of Indonesia continues to stay in the market to maintain the stability of the Indonesian rupiah exchange rate and ensure that its trend is in line with fundamental values.” The Bank of Indonesia intervenes in the offshore no-principal delivery forward foreign exchange market, domestic no-principal delivery forward foreign exchange, and spot foreign exchange markets, and buys government bonds in the secondary market. The main reason for the weakening of the Indonesian rupiah is that the market expects the Federal Reserve to raise interest rates next month, thereby boosting the yield of the US dollar and US bonds, leading to capital outflow from emerging markets. On the domestic side, the risk of MSCI's potential downgrade, domestic economic dynamics, and an increase in foreign exchange demand at the end of the year also put pressure on the Indonesian rupiah.