{
    "success": true,
    "data": {
        "id": 1836991,
        "msgid": "rupiah-weakens-due-to-multiple-negative-domestic-sentiments-1782993077",
        "date": "2026-07-02 18:08:00",
        "title": "Rupiah Weakens Due to Multiple Negative Domestic Sentiments",
        "author": "Wisnu Arto Subari",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian rupiah depreciated against the US dollar, driven by a series of negative domestic factors including high-level corruption cases, fiscal concerns, and a sharp decline in manufacturing activity. Market confidence is being tested as the S&P Global Manufacturing PMI fell to 46.9 in June 2026, its steepest drop in a year. Fitch Ratings also projected that Indonesia's foreign exchange reserves will only cover 4.9 months of external payments, below the median for BBB-rated nations.",
        "content": "<p>The exchange rate of the rupiah against the US dollar closed weaker\non Thursday afternoon (2\/7). The rupiah corrected by 43 points, or 0.24\npercent, to a level of 17,995 per US dollar, compared to the previous\nclose of 17,952 per US dollar. Money market analyst Ibrahim Assuaibi\nexplained that this depreciation was driven by a series of negative\ndomestic sentiments that pressured market confidence entering the second\nquarter of 2026. \u201cMarket confidence in Indonesia is facing a severe test\nfollowing the emergence of several negative sentiments, ranging from\nhigh-level corruption cases, concerns over the fiscal condition due to\nthe May trade balance deficit, surging inflation, to the postponement of\na capital market announcement by global index provider MSCI,\u201d Ibrahim\nstated. The domestic economic condition was further pressured by the\nrelease of S&amp;P Global data showing that Indonesia\u2019s Manufacturing\nPurchasing Managers\u2019 Index (PMI) plummeted to 46.9 in June 2026. This\nfigure marks the sharpest rate of decline in the past year. Ibrahim\nnoted that the solid decline in factory operating conditions was\ntriggered by a slump in demand for manufactured goods. New orders were\nreported to have fallen for the first time in three months at the\nfastest pace in a year. In addition to the manufacturing factor,\ninternational rating agency Fitch Ratings projected that Indonesia\u2019s\nforeign exchange reserves in 2026 would only be sufficient to finance\napproximately 4.9 months of current external payment obligations. This\nfigure is below the median for BBB-rated countries, which averages 5\nmonths. The depletion of foreign exchange reserves was triggered by\nseveral main factors. From the external side, the market is currently\nobserving the release of US Nonfarm Payrolls data. The US economy is\nestimated to have added 110,000 jobs, with the unemployment rate\npredicted to remain at 4.3 percent. In line with the movement in the\nspot market, Bank Indonesia\u2019s Jakarta Interbank Spot Dollar Rate\n(JISDOR) also showed a weakening to a level of Rp17,994 per US dollar\nfrom the previous position of Rp17,961 per US dollar.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/rupiah-weakens-due-to-multiple-negative-domestic-sentiments-1782993077",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}