Between Global and Domestic Factors, What Causes the Rupiah to Weaken?

JAKARTA, KOMPAS.com - The rupiah exchange rate reached the psychological level of 17,300 per US dollar at the start of trading today.

Head of Research at Kiwoom Sekuritas, Liza Camelia Suryanata, stated that the weakening of the rupiah cannot be entirely explained by the global strengthening of the US dollar.

This is because the US Dollar Index (DXY) is moving relatively stably.

“In this context, there needs to be an evaluation of the government’s policy mix and monetary authorities,” she said in a written statement.

Based on Kompas.com’s monitoring, at the close on Thursday (23/4/2026), the spot rupiah closed at Rp 17,286 per US dollar.

The rupiah closed 0.61 percent weaker compared to the previous day’s close at Rp 17,181 per US dollar.

However, this morning at 09:35 WIB, the rupiah exchange rate briefly touched Rp 17,312 per US dollar.

Liza revealed that the domestic weakening of the rupiah is also accompanied by a trend of rising global oil prices breaking through 100 US dollars per barrel, which adds pressure on the fiscal side.

“How much is the price and when will the Russian oil arrive and be able to secure fuel supply in Indonesia remains unclear,” she added.

This is because subsidised fuel prices have not yet been adjusted.

From the monetary side, Liza stated that Bank Indonesia’s (BI) decision to maintain the benchmark interest rate has not had a significant impact on stabilising the rupiah exchange rate.

She believes that this situation indicates the need for a more aggressive and intensive role, particularly in providing US dollar liquidity in the market.