Jakarta. The Indonesian government attributed the weakening rupiah to the rising demand for the greenback during hajj, as the national currency slipped past Rp 17,400 per dollar.

Indonesia’s rupiah keeps hitting an all-time low, closing at Rp 17,424 per dollar on Tuesday. Asked about the drop, Chief Economic Minister Airlangga Hartarto cited the hajj season as one of the reasons.

“The depreciation against the dollar is also taking place in other countries. Demand for the dollar usually rises during the hajj season,” Airlangga told a press briefing in Jakarta on Tuesday.

“The dividend payments in Q2 are causing stronger dollar demand as well.”

He went on to say that a cross-currency swap plan with China is in the pipeline without going into more details. If followed through, the deal will have Jakarta and Beijing exchange equal amounts of money in their respective currencies, hence reducing the exposure to the dollar. Jakarta is also mulling similar moves with Japan and South Korea -- also two of Indonesia’s major trading partners. 

Hajj is the major pilgrimage that able Muslims must perform at least once in their lifetime. This year, Indonesia’s Hajj contingent comprises a whopping 221,000 people, some of whom have already arrived in Mecca.

The weakening rupiah paints a grim picture of Indonesia’s economy despite the government’s announcement of a 5.61% year-on-year (yoy) expansion in Q1 2026.

President Prabowo Subianto has summoned Finance Minister Purbaya Yudhi Sadewa, Bank Indonesia Governor Perry Warjiyo, and other senior officials for a meeting in his office amid the weakening.