Jakarta. The Indonesian rupiah weakened against the US dollar on Wednesday as uncertainty surrounding Russia-Ukraine peace negotiations weighed on investor sentiment.

The rupiah closed down 46.5 points at Rp 16,324.5 per US dollar, while the US dollar index edged down 0.06 points to 106.9. On Tuesday, the rupiah had also weakened by 50 points to Rp 16,278 per dollar.

Meanwhile, the Jakarta Composite Index (JCI) fell 78.68 points, or 1.14%, to 6,794.8, ending a three-day winning streak.

Doo Financial Futures' currency analyst Ariston Tjendra said recent developments in US-led peace talks on the Ukraine war contributed to the rupiah’s decline. “The latest updates on US-Russia peace talks, with Ukraine refusing to participate, have created negative sentiment for risky assets,” Ariston said.

US President Donald Trump on Tuesday blamed Kyiv for the ongoing conflict, which began nearly three years ago when Moscow deployed troops to Ukraine. Speaking at a meeting in Saudi Arabia, where US and Russian officials held four-hour talks, Trump showed little concern for Ukraine’s exclusion from the discussions. He suggested that Ukraine’s leaders should have made concessions to Russia before the war began in 2022.

BI Keeps Benchmark Rate Steady

On the domestic front, Bank Indonesia (BI) maintained its benchmark interest rate at 5.75 percent following a two-day board meeting on Feb. 18-19. The central bank also kept the deposit facility rate at 5% and the lending facility rate at 6.5%.

BI Governor Perry Warjiyo said the rupiah remained stable despite ongoing global financial uncertainty, supported by consistent central bank stabilization policies.

“This development aligns with Bank Indonesia’s stabilization measures and is backed by continued capital inflows, attractive domestic financial yields, and Indonesia’s positive economic outlook,” Perry said.