Jakarta. Seasonal factors including the annual hajj pilgrimage and foreign debt repayments are among the main drivers behind the rupiah’s weakening against the US dollar, a senior Bank Indonesia official said on Tuesday.

The remarks came hours after the rupiah crossed Rp 17,500 per dollar for the first time, reaching a new record low.

Senior Deputy Governor Destry Damayanti said pressure on the rupiah has been fueled by rising domestic demand for US dollars tied to seasonal needs such as external debt servicing, corporate dividend distributions, and preparations for the hajj pilgrimage to Saudi Arabia.

This month, Indonesia is still in the process of sending more than 220,000 pilgrims to Saudi Arabia, the world’s largest national contingent for the annual Islamic ritual.

Beyond domestic factors, escalating tensions in the Middle East and the closure of the Strait of Hormuz have also pressured the rupiah by driving global crude oil prices sharply higher.

“Pressure on the rupiah has intensified because tensions in the Middle East continue to escalate, pushing up oil prices and increasing global uncertainty,” Destry said.

However, she argued that the current depreciation does not reflect Indonesia’s economic fundamentals and described the pressure on the currency as temporary.

“The rupiah exchange rate will return to its fundamental level,” Destry said.

She maintained that foreign investor confidence in Indonesian assets remains relatively strong, pointing to continued capital inflows into government bonds and Bank Indonesia’s rupiah securities, or SRBI.

During April 2026, capital inflows into Indonesia’s domestic financial market reached Rp 61.6 trillion ($3.5 billion), according to Bank Indonesia data.

To stabilize the currency, the central bank will continue conducting what it describes as “smart intervention” through the spot market, domestic non-deliverable forwards (DNDF), and offshore non-deliverable forward (NDF) markets, Destry said.