Jakarta. Rupiah strengthened into positive territory on Wednesday, closing firmer against the US dollar as domestic monetary stability and easing external pressures supported sentiment.

The currency appreciated by 20 points to close at Rp 16,936 per dollar on Wednesday afternoon, recovering from earlier losses of around 20 points. The rupiah had previously ended the prior session at Rp 16,956.

From the domestic front, the rupiah drew support after Bank Indonesia decided to keep its benchmark interest rate unchanged. The central bank held the BI Rate at 4.75% in December 2025, while maintaining the deposit facility rate at 3.75% and the lending facility rate at 5.5%, reinforcing expectations of policy stability.

External pressures also eased after the rupiah avoided heightened geopolitical shocks following recent remarks by US President Donald Trump. Trump reiterated that there was no retreat from plans to take control of Greenland, citing Arctic security concerns, and warned of potential tariffs on European countries.

Ibrahim Assuaibi, director of Traze Andalan Futures, said Trump’s stance had added to uncertainty in an already fragile market environment due to global trade risks.

On the European side, French President Emmanuel Macron stressed that Europe had no intention of bowing to US pressure, underscoring the importance of mutual respect and cooperation.

Ibrahim also pointed to reports by the Financial Times, noting that European resistance to Trump’s Greenland ambitions and his proposed “Peace Council” initiative had disrupted plans for a postwar economic support package for Ukraine.

The rupiah gained further support after reports emerged that the announcement of an $800 billion prosperity plan, expected to be agreed by Ukraine, Europe, and the US at the World Economic Forum in Davos this week, had been postponed, easing immediate pressure on global financial markets.