October 2, 2025 | 07:15 am
TEMPO.CO, Jakarta - Bank Indonesia (BI) will continue to intervene in the market to ensure the rupiah's stability. Executive Director of the Communication Department of BI, Ramdan Denny Prakoso, is optimistic that the monetary policy measures the central bank undertakes will gradually strengthen the Indonesian currency.
According to Denny, the central bank will always be present in both domestic and offshore markets to assure market players. "BI will continue to boldly intervene to make sure the rupiah remains controlled. We are optimistic that over time, the rupiah will strengthen gradually," he said after a meeting at the DPR building on Wednesday, October 1, 2025.
Denny explained that currency movements are influenced by domestic and international factors, one of which is the risk of a United States government shutdown. "I think not only the rupiah, but if you look at all currencies, they will also be affected by global developments, particularly in the United States," he said.
The rupiah strengthened by 60 points to 16,635 per US dollar at the close of trading on Wednesday, October 1, 2025, alongside a weakened US dollar. Forex observer Ibrahim Assuabi said the government shutdown is one of the external factors affecting the exchange rate.
The Trump-led federal government officially shut down on late Tuesday early Wednesday local time. Most of the operations and federal government services were temporarily halted because the Congress failed to approve funding for the upcoming fiscal year.
"The US government shutdown is expected to postpone the release of highly anticipated labor market data this week. The prolonged government shutdown is also expected to disrupt upcoming US data releases," said Ibrahim.
According to him, the non-farm payroll data for September is scheduled to be released on Friday, but a delay is expected. The data will provide a more definitive indication of the cooling job market, which is the primary motivator for the Federal Reserve's interest rate cut in September.
Editor’s Choice: Finance Minister Optimistic Indonesian Rupiah Will Rebound This Week
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