Bank Indonesia tightened foreign-exchange regulations to bolster the rupiah and combat inflation stoked by the Middle East conflict. The central bank mandated that exporters convert at least 70% of their foreign earnings into rupiah, aiming to curb excessive demand for dollars and stabilize the currency. This move signals a hawkish stance to protect domestic price stability, as rising oil prices linked to the war pressure the rupiah. The new rules require banks to verify export documentation before processing foreign currency conversions, increasing compliance burdens for businesses. The central bank also hinted at potential further measures if the rupiah weakens significantly, though no immediate rate hike was announced. This regulatory tightening reflects policymakers' urgency to insulate Indonesia's economy from global energy shocks.