Stronger USD against rupiah creates momentum for exports: Minister

Jakarta (ANTARA) - Agriculture Minister Andi Amran Sulaiman said the strengthening of the US dollar against the Indonesian rupiah could provide momentum to boost the country's exports, including agricultural commodities.

“We will push for more agricultural exports, especially palm oil. We believe this is good momentum,” Sulaiman said on Monday when responding to questions about the impact of the rupiah’s depreciation against the US dollar.

While acknowledging the need for a prudent response to the rupiah's weakening to around Rp18,000 per US dollar, the minister said Indonesia should seek opportunities amid the challenges, including by expanding exports.

He noted that the agricultural sector has significant potential to help the country capitalize on the situation, while increased exports could also benefit farmers.

“The weakening of the rupiah provides momentum to increase exports of agricultural and food products, which will ultimately benefit farmers,” he stressed.

Earlier, Sulaiman highlighted the continued growth of Indonesia’s crude palm oil (CPO) exports. According to Statistics Indonesia (BPS), exports of CPO and its derivative products reached US$4.69 billion during the January-February 2026 period.

The figure marked a 26.4 percent increase from US$3.71 billion recorded during the same period last year.

“We control more than 60 percent of the global market. This means Indonesia holds a decisive position,” he added.

Meanwhile, Bank Indonesia has intensified market intervention efforts to support the rupiah after the currency weakened to around Rp18,000 per US dollar.

To help stabilize the currency, the central bank is restructuring interest rates on its monetary instruments to offer more competitive yields and attract foreign portfolio investment into domestic assets.

As part of its stabilization measures, Bank Indonesia also implemented a stricter cash threshold for foreign exchange purchases effective June 2, 2026.

Under the new regulation, foreign currency purchases against the rupiah without underlying transactions - such as import invoices or debt-servicing obligations - are limited to US$25,000 per transaction per month. The policy is intended to curb speculative trading and reduce exchange rate volatility.

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Translator: M Harianto, Nabil Ihsan

Editor: Primayanti

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