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Rupiah Eases Amid US Political Shift and Geopolitical Risks

Natasha Khairunisa Amani
November 13, 2025 | 5:05 pm
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A bank staffer arranges American dollar and Indonesian rupiah bank notes at a Bank Syariah Indonesia branch in Bekasi on Feb. 21, 2025. (Antara Photo/Fakhri Hermansyah)
A bank staffer arranges American dollar and Indonesian rupiah bank notes at a Bank Syariah Indonesia branch in Bekasi on Feb. 21, 2025. (Antara Photo/Fakhri Hermansyah)

Jakarta. Rupiah ended lower on Thursday, slipping 11 points to Rp 16,728 against the US dollar after briefly touching a 30-point decline earlier in the session. The currency closed weaker from Rp 16,724 a day earlier.

Market sentiment shifted after the US House of Representatives passed a funding bill to end what has become the country’s longest government shutdown. The bill, approved in a 222–209 vote, is expected to be signed by President Donald Trump and will keep the government funded through January 30.

Traze Andalan Futures Director Ibrahim Asuaibi said the bill’s passage reduces uncertainty around US fuel demand, which had been disrupted by mass flight cancellations during the shutdown.

Ibrahim added that the reopening of government operations will allow the release of official US economic data, giving markets “new clarity from the world’s largest fuel consumer.” He expects the dollar to strengthen again once the data flow resumes.

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The rupiah also softened amid diverging views inside the Federal Reserve. Governor Stephen Miran described US monetary policy as “too tight,” while Atlanta Fed President Raphael Bostic signaled that holding rates steady remains the best option until inflation clearly moves back toward the 2 percent target.

Geopolitical risks added further pressure, with rising tensions in Europe as NATO members reportedly prepare weapons supplies for a potential direct confrontation with Russia.

Domestically, sentiment weakened after the government set a 2026 state budget deficit target of 2.68 percent of GDP, above the safe range of 2.45–2.53 percent projected for that year.

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