The rupiah exchange rate weakened again at the close of trading on\nFriday, 8 May 2026. The rupiah depreciated on Friday and closed at\n17,382 per US dollar, down 49 points.<\/p>\n
The dollar exchange rate has continued to strengthen against the\nrupiah since the beginning of this week. Bank Indonesia\u2019s Jakarta\nInterbank Spot Dollar Rate (Jisdor) data shows that the rupiah was\nrecorded at 17,368 per US dollar on Monday, 4 May 2026, and briefly\nmoved above the 17,400 per US dollar level on 5 and 6 May 2026.<\/p>\n
Director of PT Traze Andalan Futures, Ibrahim Assuabi, predicts that\nthe Indonesian currency will move fluctuantly on Monday next week, 11\nMay 2026. \u201cHowever, it will close weaker in the range of 17,380-17,430\nper US$,\u201d he stated in an official comment quoted on Saturday, 9 May\n2026.<\/p>\n
The rupiah\u2019s weakening occurs alongside the strengthening of the\ndollar index. According to Ibrahim, the dollar\u2019s strengthening against\nseveral currencies, including the rupiah, is happening amid the Middle\nEast conflict, particularly between the United States and Iran. The US\nand Iran were nearly reaching an agreement that would end the fighting\nand allow the Strait of Hormuz to reopen fully, but it postponed larger\nissues surrounding Iran\u2019s nuclear programme.<\/p>\n
\u201cHowever, fighting has broken out again between the US and Iran,\nthreatening the fragile ceasefire and destroying hopes for progress in\nreopening the Strait of Hormuz, the main transit route for oil and gas,\u201d\nhe said.<\/p>\n
On the domestic side, sentiment affecting the rupiah includes\ngovernment debt, which as of 31 March 2026, has breached Rp9,920.42\ntrillion. This position rose nearly 3 percent from the level at the end\nof December 2025, which was Rp9,637.9 trillion. The government\u2019s debt\nposition by the end of the first quarter of 2026 is equivalent to 40.75\npercent of Gross Domestic Product (GDP).<\/p>\n
On one hand, the state budget deficit up to the first quarter has\nreached Rp240.1 trillion or 0.93 percent of GDP, with debt financing\nalready realised at Rp258.7 trillion or 31.1 percent of GDP.<\/p>\n
\u201cState revenues, particularly taxation, are considered key after the\nrating agency warned Finance Minister Purbaya Yudhi Sadewa regarding the\nratio of debt interest payments to GDP,\u201d said Ibrahim.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-predicted-to-weaken-next-week-1778334714", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }