TEMPO.CO, Jakarta - Bank Indonesia (BI) will continue to carefully observe market movements, including ensuring that the exchange rate of the rupiah moves in line with its fundamentals. Head of the Monetary and Securities Asset Management Department at Bank Indonesia, Erwin Gunawan Hutapea, stated that this action is a response to the escalation of conflict in the Middle East following the United States' attack on Iran, which has driven "risk-off" sentiment in global financial markets.
"Bank Indonesia will continue to intervene in the market through non-deliverable forward (NDF) transactions in the foreign market and spot transactions and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market," Erwin said in an official statement on Monday, March 2, 2026.
He mentioned that BI will also continue to optimize policies to enhance the effectiveness of interest rate policy transmission.
On Monday, March 2, 2026, at 09:44 WIB (UTC+7), the rupiah was at Rp16,820 per U.S. dollar. Director of PT Traze Andalan Futures, Ibrahim Assuaibi, estimated that the rupiah could weaken to Rp17,000 per U.S. dollar due to the attack on Iran.
Ibrahim stated that the weakening of the rupiah should be anticipated by Bank Indonesia. "This is what Bank Indonesia needs to anticipate, intervention to monitor the monetary situation," Ibrahim said in his statement on Saturday, February 28, 2026.
Israel and the U.S. attacked Iran on Saturday, February 28, 2026. The Iranian state media, Fars, reported that the country's supreme leader, Ayatollah Ali Khamenei, had been killed. The announcement was made following U.S. President Donald Trump's announcement of Khamenei's death on Truth Social on Sunday, March 1, 2026.
Founder and CEO of Supply Chain Indonesia (SCI), Setijadi, estimated that the price of diesel could increase by Rp750-2,000 per liter due to Israel's attack on Iran. "The impact on Indonesia will occur through the transmission of global oil (Brent) prices to domestic diesel prices," he said in a written message on Sunday, March 1, 2026.
The increase in diesel prices could be due to the potential for disruptions in the Strait of Hormuz caused by the escalation of conflict. This route accounts for around 20 percent of the world's oil consumption and 20-25 percent of global liquefied natural gas (LNG) trade. As a result, international energy prices could soar in the event of a disruption.
Read: Indonesia's Immigration Waives Overstay Fines Amid Iran Conflict
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