exellent crabgood crab

Rupiah Under Pressure, Seen Approaching Rp 18,000 per Dollar

Addin Anugrah Siwi
May 28, 2026 | 4:34 pm
SHARE
A teller counts stacks of rupiah banknotes alongside US dollar bills at a money changer in Jakarta. (Antara Photo/Muhammad Adimaja)
A teller counts stacks of rupiah banknotes alongside US dollar bills at a money changer in Jakarta. (Antara Photo/Muhammad Adimaja)

Jakarta. Rupiah hovered near a record low on Thursday and could move closer to Rp 18,000 per US dollar when markets reopen on Friday, as rising geopolitical tensions and surging oil prices intensify pressure on Indonesia’s currency.

According to Bloomberg data at 3 p.m. Jakarta time, the rupiah stood at Rp 17,845 per US dollar during the Idul Adha market holiday.

Currency observer Ibrahim Assuaibi said both global and domestic factors were driving negative sentiment toward the rupiah. “External and domestic factors are both strongly supporting the rupiah’s weakening,” Ibrahim said on Thursday.

He warned the currency could continue to slide in the next trading session and approach the psychological Rp 18,000 level.

ADVERTISEMENT

“There is a possibility that when the market opens on Friday, the rupiah could move closer to Rp 18,000 per US dollar,” he said.

Ibrahim said escalating geopolitical tensions in the Middle East and Eastern Europe were pushing global investors toward safe-haven assets such as the US dollar.

“The geopolitical situation in the Middle East is becoming increasingly tense,” he said.

He added that tensions around the Strait of Hormuz could disrupt global energy trade routes and trigger another spike in oil prices.

“This could create further tensions in the Strait of Hormuz and push oil prices higher,” Ibrahim said.

The ongoing Russia-Ukraine conflict has also continued to fuel global uncertainty and weigh on emerging-market currencies, he added.

“Tensions in both Europe and the Middle East have pushed global oil prices back above $92 per barrel, and now they are around $96 per barrel,” Ibrahim said.

Higher oil prices have increased Indonesia’s demand for dollars to pay for energy imports, while the greenback has also strengthened on expectations that the Federal Reserve will keep interest rates elevated for longer.

“The central bank’s main concern right now is inflation, rather than weakening labor market conditions,” he said.

Domestically, Ibrahim said strong demand for dollars for oil imports, dividend payments, foreign exchange needs, and continued capital outflows were adding to pressure on the rupiah.

“The rupiah’s weakness is also being driven internally, especially by sharply higher oil prices and strong dollar demand due to large oil imports,” he said.

He said Bank Indonesia had already intervened aggressively to stabilize the rupiah, but simultaneous external and domestic pressures continued to leave the currency vulnerable.

“Bank Indonesia has intervened as strongly as possible, but the scale of the external and internal pressures is very significant,” Ibrahim said.

According to Ibrahim, the rupiah could weaken toward Rp 17,900 per US dollar by the end of Thursday’s trading and edge closer to Rp 18,000 at Friday’s opening.

Tags: Keywords:
SHARE

Related Articles


Business Jul 17, 2026 | 3:53 pm

Rupiah Defies Global Tensions, Closes at Rp 17,921 per Dollar

Rupiah gained 0.36% to Rp 17,921 per US dollar on Friday as stronger BI survey data outweighed Middle East tensions.
Business Jul 16, 2026 | 4:36 pm

Rupiah Exits Rp 18,000 Zone on Thursday

Rupiah strengthened 0.45% to Rp 17,986 per US dollar on Thursday, buoyed by BI's independence and softer-than-expected US inflation.
Business Jul 15, 2026 | 5:51 pm

Rupiah Climbs to Rp 18,068 as Softer US Inflation Weighs on Dollar

Rupiah strengthened to Rp 18,068 per US dollar on Wednesday as softer US inflation weakened the greenback despite Middle East tensions.
Business Jul 14, 2026 | 5:16 pm

Rupiah Strengthens to Rp 18,091 as S&P Outlook Lifts Sentiment

Rupiah strengthened to Rp 18,091 per US dollar as optimism over S&P's growth outlook outweighed Middle East tensions.
Business Jul 13, 2026 | 4:54 pm

Rupiah Slides Further as Middle East Escalation, Domestic Legal Turmoil Weigh on Sentiment

Rupiah fell to Rp 18,109 per US dollar as escalating US-Iran tensions and domestic legal uncertainty dampened investor sentiment.
Business Jul 10, 2026 | 4:31 pm

IMF, ADB Optimism Lifts Rupiah Despite Global Geopolitical Risks

Rupiah gained 0.35% as IMF and ADB reaffirmed Indonesia's growth outlook, boosting investor confidence despite geopolitical risks.
Business Jul 9, 2026 | 4:35 pm

Rupiah Plunges to Rp 18,128 as US-Iran Tensions Escalate

Rupiah plunges to Rp 18,128 per dollar as escalating US-Iran tensions and weaker consumer confidence weigh on sentiment.
Business Jul 8, 2026 | 5:06 pm

Rupiah Breaches 18,000 per Dollar on Renewed Geopolitical Jitters

Rupiah fell past the Rp 18,000-per-dollar mark on Wednesday as escalating Iran tensions and higher US Treasury yields hit sentiment.
Business Jul 6, 2026 | 5:09 pm

Rupiah Retreats to Rp 17,995 Amid Fitch Warning and Fed Uncertainty

Rupiah weakened to Rp 17,995 per US dollar on Monday as Fitch's warning on Indonesia and global uncertainty weighed on sentiment.
Business Jul 6, 2026 | 3:28 pm

Indonesia's $1.8 Billion Bond Auction Seen Drawing Strong Demand as Yields Rise

Indonesia expects solid demand for its Rp 32 trillion bond auction as higher yields and a firmer rupiah improve investor sentiment.

The Latest


News 2 hours ago

Fajar and Fikri Upset World No. 1 Pair to Win Japan Open

The Indonesians prevailed 21-19, 21-17 after producing a composed performance to counter the Koreans' aggressive style of play.
Business 5 hours ago

Indonesia Stocks Add $22.7 Billion in Value as Banks Lead Market Rally

Indonesia's stock market added $22.7 billion in value in a week as banking stocks led a broad-based rally.
News 6 hours ago

KPK Urges Low-Cost Campaign Model After Arresting 15 Regional Leaders in 1.5 Years

Since the start of 2025, the KPK has arrested one governor, one mayor, and 13 regents in separate corruption investigations.
Tech 6 hours ago

Indonesia Eyes Bigger Role in New Global AI Organization

Indonesia sought deeper AI cooperation and Chinese investment while backing a new global AI organization.
Business Jul 18, 2026 | 3:56 pm

Prabowo Orders Up to 50 Ethanol Plants to Support E20 Fuel Program

Indonesia plans E20 gasoline within years, backed by up to 50 new ethanol plants and a nationwide sugarcane replanting drive.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED