Indonesia’s central bank moved to tighten rules on foreign‑exchange purchases after the rupiah slumped to a historic low against the dollar, in the Southeast Asian market. Regulators now require tighter documentation for firms buying dollars, aiming to curb speculative outflows that have pressured the currency. The shift signals a more interventionist stance as policymakers seek to stabilize the market.

The move follows weeks of volatility sparked by a widening current‑account deficit and uncertainty over regional monetary policy, and heightened inflation fears. Traders have watched the rupiah tumble near the 16,000 per dollar mark, prompting concerns among import‑dependent businesses that higher hedging costs could erode profit margins for the economy. By tightening FX rules, authorities hope to deter rapid dollar‑seeking trades that amplify swings.

Market participants see the tighter regime as a direct attempt to protect the rupiah and preserve foreign‑exchange reserves. While the policy may curb short‑term pressure, it could also restrict legitimate corporate hedging, potentially raising financing costs for exporters. Investors will watch how the intervention balances currency stability with the need for fluid capital flows in the coming months.