We are simply monitoring it, and it is Bank Indonesia’s duty to maintain stability,Jakarta (ANTARA) – Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said the government will remain cautious as rising global tensions drag the rupiah past Rp17,200 per US dollar.“We are witnessing global volatility as the primary reason. Therefore, let us just monitor the developments,” he remarked at the Ministry of Investment and Downstreaming office in Jakarta on Thursday.He made the statement after the rupiah’s exchange rate weakened by 108 points, or 0.63 percent, to Rp17,289 per US dollar on Thursday morning, slipping from its previous close of Rp17,181.Amid the alarming trend, Hartarto assured the public that the government is working to identify effective anticipatory measures, noting that the assumed exchange rate in the 2026 State Budget stands at Rp16,500 per US dollar.”We will just monitor the situation, as it would be imprudent to take reactive steps every day. We are simply monitoring it, and it is Bank Indonesia’s duty to maintain stability,” the minister affirmed.Indonesia Commodity & Derivatives Exchange (ICDX) analyst Muhammad Amru Syifa echoed a similar view, saying the conflict involving the United States and Iran has driven up energy prices, consequently weighing on the rupiah.“The Middle East conflict, stemming from tensions between the US and Iran, has led to soaring energy prices and increased demand for the US dollar as a safe-haven asset,” he told ANTARA.Against this backdrop, Syifa welcomed Bank Indonesia’s decision to maintain the interest rate at 4.75 percent and raise the threshold for domestic non-deliverable forward and swap transactions from US$5 million to US$10 million each.He described the move as a concrete effort to shield the rupiah from intensifying external pressures.The central bank has said the policy aims to ease pressures in the foreign currency spot market while stabilizing the rupiah’s exchange rate.“The rupiah will remain heavily dependent on geopolitics, the Federal Reserve's policy, and the effectiveness of the domestic policy mix in safeguarding money market stability,” Syifa noted.