Jakarta. Rupiah strengthened against the US dollar on Friday as investors welcomed renewed confidence in Indonesia's economic outlook after the International Monetary Fund (IMF) and the Asian Development Bank (ADB) reaffirmed their growth projections for the country.

Bloomberg data showed the rupiah closed at Rp 18,065 per US dollar in the spot market at 3:59 p.m. Jakarta time, gaining 63 points, or 0.35%, from the previous session.

Currency analyst and Traze Andalan Futures Director Ibrahim Assuaibi said the rupiah drew support from international institutions maintaining an optimistic view of Indonesia's economy. "The market responded positively to the IMF's decision to maintain Indonesia's economic growth forecast at 5.0% for 2026," Ibrahim wrote in a research note on Friday.

The IMF also projects Indonesia's gross domestic product (GDP) to expand 5.1% in 2027, outperforming the average growth forecast of 4.8% for emerging and developing Asian economies in 2026.

The ADB likewise expects Indonesia's economy to grow 5.2% in both 2026 and 2027, while describing the country's economic outlook as stable. Its 2026 projection was unchanged from the Asian Development Outlook (ADO) published in April.

Despite the positive assessments, the IMF's 5.0% growth projection for 2026 remains below the government's 5.4% target set in the 2026 state budget.

On the domestic front, Ibrahim said stronger vehicle sales alone do not yet indicate a full recovery in household purchasing power, with consumer spending expected to improve only gradually.

According to the Association of Indonesian Automotive Industries (Gaikindo), wholesale vehicle sales reached 77,550 units in June, up 12% from a year earlier. The increase followed a 14% annual gain in May, making June the third consecutive month of year-on-year growth.

Cumulatively, new vehicle sales in the first half of 2026 climbed 15.9% year-on-year to 436,564 units.

"The figures show consumer demand remains resilient even as households continue to face inflationary pressures and higher non-subsidized fuel prices," Ibrahim said.

Externally, however, geopolitical uncertainty continued to weigh on sentiment after US President Donald Trump declared the ceasefire with Iran had ended and ordered further military strikes, prompting retaliatory action from Tehran.

Other exchange rates against the rupiah on Friday stood at Rp 13,992 per Singapore dollar, Rp 111.73 per Japanese yen, Rp 12,542 per Australian dollar, and Rp 20,652 per euro.

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