Jakarta. Rupiah extended its decline against the US dollar on Tuesday as renewed geopolitical tensions pushed oil prices higher and raised concerns over Indonesia’s energy import bill.

The rupiah closed at Rp 17,862 per dollar on Tuesday, weakening 64 points or 0.36% from Rp 17,798 in the previous session.

The currency came under further pressure after Bank Indonesia reported that Indonesia’s external debt reached $453.4 billion in the second quarter of 2026, up 4.4% year-on-year from $444.4 billion in May. The latest figure is equivalent to around Rp 8,089.1 trillion, compared with Rp 7,928.5 trillion previously.

Externally, the rupiah was also pressured by higher oil prices after US President Donald Trump said Washington would not seek an extension of the ceasefire agreement with Iran, which was signed in mid-June.

Tensions have persisted after Yemen’s Houthi group launched another attack on Saudi military vessels and four escort ships in the Red Sea using missiles.

Meanwhile, Iran and Oman have recently signaled discussions over shipping routes through the Strait of Hormuz, easing some concerns over tighter oil supplies. No firm agreement has been announced, however.

“Continued energy-driven inflation risks mean markets have not fully ruled out the possibility of a rate hike at the end of this year,” Traze Andalan Futures Director and Currency Analyst Ibrahim Assuaibi said in a statement on Tuesday.

“Market participants are now awaiting the minutes of the July FOMC meeting, due Wednesday, for further clarity on the Federal Reserve’s policy direction,” he added.

Ibrahim said crude oil prices above $83 per barrel would increase the country’s foreign-exchange burden for energy imports.

“High crude oil import requirements force businesses and the government to make payments in US dollars,” he said.

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