Indonesia caps dollar purchases as rupiah nears record lows

Bank Indonesia slashed foreign currency purchase limits to $50,000 per month from $100,000 as the rupiah traded near 17,000 per dollar, its weakest level on record. The emergency measures follow capital flight triggered by Middle East war fears, with supporting documents now required for all FX transfers above $50,000. Natural resource exporters must place 100% of export proceeds in state banks for 12 months under separate rules introduced in January. Governor Perry Warjiyo kept rates steady at 4.75% but signalled interventions will escalate if the conflict persists, prioritising foreign reserves over monetary easing as inflation threatens Southeast Asia's largest economy.