Iran and Israel Exchange Missile Attacks as Rupiah Set to Breach Rp17,000 per US Dollar

Jakarta — The Indonesian rupiah is forecast to weaken against the US dollar in the coming week. Pressure on the currency stems from geopolitical tensions in the Middle East following Israeli attacks on Iran.

“The rupiah closed as expected on Friday, but it is likely to experience renewed weakness,” said currency and commodities analyst Ibrahim Assuaibi in a statement on Saturday (28 February 2026).

Ibrahim explained that previous rupiah weakness was triggered by US trade war concerns. President Donald Trump raised global tariff rates from 10 per cent to 15 per cent, including 104 per cent tariffs on solar cells and panels from Indonesia.

“This indicates that the trade war between Indonesia and the United States is heating up again. Combined with the conflict in the Middle East, the rupiah is likely to experience quite significant depreciation,” he said.

“As such, the rupiah could potentially reach levels around Rp17,000 per US dollar in the coming week,” he added.

With this outlook, Ibrahim believes Bank Indonesia must anticipate potential rupiah weakness next week. Through central bank intervention, rupiah depreciation is expected to be contained.

“This is what Bank Indonesia must anticipate through intervention and monetary surveillance,” he said.

The rupiah weakened by 28 points, or 0.17 per cent, to Rp16,793 per US dollar at the close of trading on Friday (27 February 2026).