Jakarta. Chief Economic Affairs Minister Airlangga Hartarto warned of mounting pressure on the rupiah as it weakened toward Rp 17,400 per US dollar on Monday, citing global dollar strength and escalating geopolitical uncertainty that is starting to hit Indonesia’s manufacturing sector.

Data from Bloomberg at 3:24 p.m. Jakarta time showed the rupiah weakening 47 points, or 0.27%, to Rp 17,384 per US dollar in the spot market. The depreciation aligns with a stronger US dollar index, which continues to pressure emerging market currencies. Meanwhile, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (Jisdor) on May 4 stood at Rp 17,368 per US dollar.

Airlangga said the rupiah’s decline is largely driven by global factors, particularly the broad-based strengthening of the US dollar.

“The government will certainly monitor the situation, but exchange rate depreciation is not unique to Indonesia. Many countries are facing the same challenge,” he said at his office on Monday.

He added that Indonesia’s manufacturing sector has begun to show signs of weakening as businesses grow increasingly cautious amid unresolved global conflicts, which continue to disrupt supply chain stability.

“Manufacturing is declining because the outlook of the war remains uncertain,” he said, warning that potential disruptions could spill over from the energy sector into petrochemicals, plastics, and logistics.

The pressure is particularly significant for domestic manufacturers, which rely heavily on stable input costs and smooth distribution flows. In response, the government is intensifying oversight and benchmarking Indonesia’s economic performance against peer countries to guide policy measures.