BI States Rupiah Breaches Rp 17,500 Due to Global Pressures, Not Domestic Factors

JAKARTA, KOMPAS.com - Bank Indonesia (BI) has confirmed that the stability of the rupiah’s exchange rate remains maintained, even though it temporarily breached the level of Rp 17,500 per US dollar.

Executive Director of the BI Communication Department, Ramdan Denny Prakoso, stated that the rupiah’s weakening is more influenced by global pressures, particularly the Middle East conflict and the strengthening of the US dollar.

“There is no reason for the rupiah to be unstable,” said Denny when met at his office in Jakarta on Tuesday (13/5/2026).

The conflict has triggered a surge in global oil prices by more than 40 percent.

Pressure also stems from the rise in yields on 10-year US Treasuries approaching 4.5 percent, up from around 4 percent at the end of February 2026.

This condition is reinforced by the strengthening of the US dollar index.

“At the end of February 2026, exchange rate movements in various countries were heavily influenced by global dynamics, especially the Middle East conflict which resulted in rising oil prices,” he said.

Domestically, demand for US dollars has also increased due to seasonal factors.

Foreign exchange needs have risen for dividend repatriation, foreign debt payments, and the Hajj season.

Nevertheless, BI is optimistic that the rupiah will stabilise again and tend to strengthen in line with the ongoing stabilisation efforts.