INDEF: Rupiah Weakness Offers Opportunity to Boost Exports

The rupiah’s weakening should provide momentum for Indonesia to boost exports and enhance national product competitiveness globally. However, this opportunity has not materialised, as Indonesian exports slowed in early 2026. “Looking at China, they devalue their currency to keep products cheap in global markets,” said Tauhid. The rupiah has continued to weaken, closing at Rp17,804 per US dollar on Tuesday, 26 May 2026, down 0.05% from Monday’s closing rate of Rp17,796. Tauhid stated Indonesia did not intentionally devalue its currency, but the natural depreciation should be utilised to expand exports. “We are not devaluing, but the rupiah is weakening naturally. This should be a moment to boost exports, not see them decline,” he said. He noted this contradicts basic international trade theory, where a weaker domestic currency benefits exporters by lowering product prices abroad. “If export growth is falling, that’s the opposite of what should happen,” he added.