Bank Indonesia Maintains Spot Market Intervention

Bank Indonesia (BI) has maintained its intervention in the domestic spot market to ensure the stability of the rupiah exchange rate, as per market conditions. Erwin Gunawan Hutapea, the Head of BI’s Monetary Management and Securities Asset Department, stated that the central bank is promoting a more balanced mix of interventions across three markets: spot, Domestic Non-Deliverable Forward (DNDF), and Non-Deliverable Forward (NDF).

According to Erwin, this does not suggest that the central bank has reduced its commitment to intervening in the spot market.

During a media briefing on September 30, 2026, Erwin clarified that the central bank does not set a specific target for the distribution of interventions among the spot, DNDF, and NDF markets. Instead, it aims to maintain a balanced mix to prevent all foreign exchange transactions in the domestic market from being executed as spot trades. Spot trading involves two-day settlement after a transaction is executed.

To address non-urgent foreign exchange needs, Bank Indonesia encourages the use of hedging mechanisms. If the domestic market experiences high demand for the spot market and the supply and demand fail to balance naturally, the central bank, as the authority responsible for stability, will intervene to preserve that stability, Erwin explained.

Earlier, BI Governor Destry Damayanti mentioned that the central bank is reducing its spot market interventions due to their high costs, as large-scale spot market interventions risk depleting foreign exchange reserves. She noted that the interventions previously focused heavily on the spot market, now accounting for only around 30 percent of the total interventions carried out by the central bank, according to her statement during a hearing with Commission XI of the House of Representatives (DPR) on September 28, 2026.