Several foreign media outlets are highlighting the weakening of the\nrupiah, including prominent Singaporean platforms. Two major sites,\nChannel News Asia (CNA) and The Straits Times, have dedicated\nsignificant coverage to the issue, with CNA quoting AFP and The Straits\nTimes referencing Bloomberg.<\/p>\n
CNA published the headline \u201cIndonesian rupiah falls to record low\nagainst US dollar,\u201d noting that the rupiah reached 18,028 against the\ngreenback despite recent efforts by the central bank to provide support.\nThe report stated that the Indonesian rupiah hit its weakest level\nagainst the US dollar on Thursday (4 June), breaching the psychological\nthreshold of 18,000 amid concerns about the national economy amidst\nsurging energy costs.<\/p>\n
According to Bloomberg News, the rupiah has fallen by more than 7%\nthis year, making it the worst-performing currency in Asia, as the\nUS-Israel conflict involving Iran has caused global oil prices to surge.\nThe report further explained that the weakness was triggered by high\ndemand for the US dollar caused by the spike in oil prices and a\nnarrowing trade surplus. It emphasised that Indonesia is a net oil\nimporter and is heavily impacted by rising crude oil costs, amidst the\ngovernment\u2019s strenuous efforts to maintain subsidised fuel prices.<\/p>\n
Local economist Josua Pardede, cited via AFP, noted that the nation\u2019s\ntrade surplus has been hit, narrowing to just US$89 million in April\nfrom US$3.3 billion the previous month, which further reduces the dollar\nsupply in the Indonesian market.<\/p>\n
The Straits Times published an article titled \u201cRupiah falls through\nkey psychological level, putting markets on guard for intervention.\u201d It\nreported that the rupiah\u2019s fall below the key level of Rp 18,000 against\nthe dollar has put market observers on alert. The exchange rate dropped\n0.35% to 18,029.5 per US dollar at 11:06 am Singapore time, bringing the\nyear-to-date depreciation in 2026 to over 7%.<\/p>\n
Against the Singapore dollar, the rupiah also fell to a new low,\ntrading at 14,047.71\u2014a 0.32% decline overnight and a 9.3% drop since the\nstart of the year. The rupiah is currently the worst-performing currency\nin Asia for 2026, partially pressured by fears that high oil prices will\nwiden Indonesia\u2019s budget deficit through higher energy subsidy\ncosts.<\/p>\n
Breaking below the 18,000 mark could accelerate foreign capital\noutflows from local stocks and bonds, making this level a critical test\nfor policymakers attempting to restore confidence in an economy facing\nincreasing challenges. Investor sentiment towards Indonesian assets\nworsened in 2026 after MSCI warned that the country could be\nreclassified, while Fitch Ratings and Moody\u2019s Ratings revised their\nsovereign outlooks. Concerns have also risen regarding the government\u2019s\nefforts to exert greater control over key commodity exports.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/singapore-media-highlight-rupiah-weakness-amid-record-low-1780558257", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }