Rupiah Strengthens Against U.S. Dollar Amid Bank Indonesia’s NDF Intervention

JAKARTA, Jakartaweekly.com – The rupiah closed stronger against the U.S. dollar in Wednesday trading, May 13, 2026, amid intervention measures carried out by Bank Indonesia in the offshore Non-Deliverable Forward (NDF) market.

By the close of afternoon trading, the rupiah had strengthened by 53 points to Rp17,475 per U.S. dollar from the previous close of Rp17,528 per dollar. The Indonesian currency had earlier gained as much as 75 points during the session.

Economic and currency analyst Ibrahim Assuaibi said the intervention was carried out continuously across the New York, Asian, and European markets to maintain rupiah stability amid elevated global pressure.

“Although Thursday and Friday are public holidays, Bank Indonesia continues to intervene in the offshore (NDF) market to stabilize the rupiah amid heightened global pressure,” Ibrahim said in a written statement on Wednesday.

In addition to offshore intervention, Bank Indonesia is also expected to conduct aggressive intervention in the domestic market starting from the opening of trading on May 18, 2026, through foreign exchange intervention in both the spot and Domestic Non-Deliverable Forward (DNDF) markets, as well as purchases of government bonds in the secondary market.

Another factor supporting the rupiah’s appreciation against the U.S. dollar was the government’s debt position, which reached Rp9,920.42 trillion as of the end of March 2026 and was still considered manageable. The debt-to-GDP ratio stood at 40.75 percent, remaining below the 60 percent threshold stipulated under the State Finance Law.

On the other hand, markets remain overshadowed by geopolitical uncertainty after U.S. President Donald Trump described negotiations with Iran as being in a “critical” condition following Tehran’s rejection of a U.S.-backed proposal aimed at ending the conflict and reopening the Strait of Hormuz.

The situation has raised concerns over disruptions to global oil shipping routes and the potential for rising inflation driven by higher energy prices. Investors are also awaiting a meeting between Trump and Chinese President Xi Jinping in Beijing on May 14–15, where trade tensions, the Iran conflict, Taiwan, and global supply chains are expected to be discussed.

In the United States, the conflict with Iran has started to affect the economy. U.S. consumer inflation in April 2026 rose 0.6 percent month-on-month, while annual inflation accelerated to 3.8 percent, the highest level since mid-2023.

“Markets are now awaiting U.S. producer price index data due later on Wednesday for further clues on inflationary pressure and the direction of Federal Reserve policy,” Ibrahim said.

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