Rupiah Weakens Despite Solid Q3 Growth, Fed Policy Keeps Dollar Strong
Jakarta. Rupiah weakened against the US dollar on Wednesday, despite upbeat domestic economic data showing steady growth in the third quarter of 2025.
The local currency closed at Rp 16,717 per dollar, down 9 points from Tuesday’s close of Rp 16,676, after earlier slipping as much as 20 points during the day.
The depreciation came even after the Central Statistics Agency (BPS) reported that Indonesia’s economy expanded by 5.04 percent year-on-year in the third quarter, signaling resilience amid ongoing global uncertainty. On a quarterly basis, GDP rose 1.43 percent, while cumulative growth from January to September reached 5.01 percent compared to the same period last year.
“The US dollar has continued to strengthen since last week after the Federal Reserve said a December rate cut is not guaranteed,” said Ibrahim Assuaibi, Director at Traze Andalan Futures. “Although the central bank trimmed rates by 25 basis points in October, the move was widely expected and failed to slow the dollar’s momentum.”
The rupiah also remained under pressure from concerns over the US government shutdown, which has now entered its sixth week and could become the longest in history.
“Today’s market focus is on US private payroll data for October, which may provide more clues on the Fed’s policy direction,” Ibrahim added. The upcoming ADP Nonfarm Employment Change report is projected to show a gain of 25,000 jobs, compared to a decline of 32,000 in the previous reading.
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