Indonesia tightens dollar rules as rupiah falls below 17,400 per US dollar

KUALA LUMPUR, 21 JULY 2026 —

Bank Indonesia governor Perry Warjiyo said authorities have cut the monthly threshold for dollar purchases to US$25,000 from US$50,000 to defend a rupiah that has fallen below 17,400 per US dollar. The move follows an earlier reduction from US$100,000 in April and comes as the currency faces seasonal pressure from dividend outflows and hajj travel demand.

Warjiyo told reporters in Jakarta that cross-border currency weakness is broad-based, but Bank Indonesia is limiting the rupiah’s depreciation. “We are making sure that the degree of depreciation does not become too large by taking all-out measures,” he said. He cited strong first-quarter growth of 5.61% year-on-year as proof of economic resilience, the fastest expansion since the third quarter of 2022.

The statistics agency attributed the growth to household and government spending despite higher global oil prices. Indonesia, which imports refined fuels, has kept subsidised fuel prices unchanged. Warjiyo called the rupiah “undervalued” and said external buffers remain adequate even as the Middle East conflict adds to global uncertainty.

The central bank has progressively tightened dollar access since April. Current buyers of more than US$50,000 in a month must supply supporting documents; the threshold will drop to US$25,000 once a new rule takes effect. The measures aim to curb volatility without choking trade or investment.

For Malaysian companies with rupiah exposures, the tighter controls raise hedging costs and lengthen settlement times for Indonesian counterparties.