Jakarta. Rupiah (IDR) extended its appreciation against the US dollar (USD) on Friday despite global uncertainty driven by the ongoing US government shutdown.

The local currency strengthened by 11 points to close at Rp 16,690 after briefly weakening by 20 points earlier in the session, compared to Thursday’s close at Rp 16,617.

Traze Andalan Futures Director Ibrahim Assuaibi said the rupiah managed to stay firm even as the US government shutdown entered its second month, delaying key economic releases, including employment and inflation data.

“The absence of official data has heightened uncertainty, prompting investors to rely on private-sector surveys as economic signals,” Ibrahim said in a written statement on Friday.

He added that the rupiah’s resilience persisted despite weaker US private-sector job reports, which have strengthened expectations for the Federal Reserve to ease its policy rate earlier than anticipated.

Meanwhile, China’s October 2025 trade data showed falling exports and imports, signaling ongoing trade pressures and weak domestic demand.

“Market sentiment was also rattled by renewed US-China tensions,” Ibrahim noted. “Reports suggested that Washington plans to block Nvidia from selling small-scale AI chips to China, a move that could restrict Chinese firms’ access to advanced technology. However, this development had a limited impact on the rupiah.”

Domestically, investors remain watchful of Indonesia’s slowing economic growth, which expanded only 5.04 percent in the third quarter of 2025.

“To achieve the government’s 5.2 percent full-year growth target, fourth-quarter GDP must accelerate to around 5.77–5.8 percent,” Ibrahim said.

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