Ahead of MSCI Announcement, 1 US Dollar Reaches Rp 17,502
REPUBLIKA.CO.ID, JAKARTA – The rupiah exchange rate fell again at the opening of trading on Tuesday (21/5/2026). According to Bank Indonesia’s daily data, the rupiah against the US dollar returned to the Rp 17,500 territory, precisely Rp 17,502, after a slight strengthening to Rp 17,400 the previous day. This position is the second weakest for the rupiah in May, previously on Monday last week (6/5/2026), the rupiah exchange rate against the US dollar plummeted to Rp 17,512, Indonesia’s weakest historical position.
The rupiah’s weakening on Tuesday morning was relatively anticipated by market observers. Besides global conditions from the US-Israel war against Iran, it is also awaiting the Morgan Stanley Capital International (MSCI) announcement scheduled for today. The market is waiting to see if MSCI will respond positively to the changes made by the Indonesia Stock Exchange regarding shareholders at the exchange.
Currency analyst at Doo Financial Futures, Lukman Leong, said the rupiah weakened due to dimming hopes for US-Iran peace. “The rupiah is expected to remain potentially weakening against the US dollar amid fading hopes for US-Iran peace and still high world crude oil prices,” he said in Jakarta on Tuesday.
From domestic sentiment, investors are said to be awaiting Indonesia’s March 2026 retail sales data, which will be released this afternoon. “Retail sales are expected to be slightly higher, (namely) 6.8 percent, compared to February’s 6.5 percent,” said Lukman, predicting.
The announcement from Morgan Stanley Capital International (MSCI) is also predicted not to be positive for the Composite Stock Price Index (IHSG) and will further pressure the rupiah. “There will be stocks that are removed, and some large-cap stocks that are downgraded,” he stated.
The government appears to be hastily handling this rupiah situation since last week. President Prabowo Subianto once called Bank Indonesia Governor Perry Warjiyo, Finance Minister Purbaya Yudi Sadewa, and Financial Services Authority Head Friderica Widyasari Dewi to the Palace in the evening to discuss the rupiah weakening situation.
Finance Minister Purbaya claimed global factors as the main cause of pressure on the rupiah. The Finance Minister claimed that the fiscal condition, which was highlighted in the international rating agency’s report, is running well. Meanwhile, the BI Governor at the beginning of the month emphasised that the rupiah exchange rate is already undervalued, and BI continues to stabilise the exchange rate.