Rupiah Breaches Rp 17,326, Driven by Danantara Sentiment and Middle East Conflict

JAKARTA, KOMPAS.com - The rupiah exchange rate in the spot market plunged at the close of trading on Wednesday (29/4/2026). The Garuda currency weakened by 84.50 points or 0.48 percent to the level of Rp 17,326 per US dollar.

Currency and Commodities Analyst, Ibrahim Assuaibi, assessed that the rupiah’s weakening was driven by internal and external factors.

Domestically, the target for economic growth of up to 8 percent is deemed difficult to achieve while practices of criminalising public policy continue.

According to him, the risk of criminalisation causes public officials to lose courage and creativity when making strategic decisions, especially those related to business.

“Business decisions inherently always carry risks. However, if those risks lead to potential criminal penalties, state officials will tend to avoid decision-making,” he explained.

On the other hand, the rating agency Fitch Ratings also highlighted several investor concerns regarding Danantara.

Fitch also assessed the potential use of Danantara to support government programme financing, especially when there is a gap between the budget and state spending needs.

This raises questions about Danantara’s position as a sovereign wealth fund (SWF) that should be commercially oriented.

For external factors, the global market is currently observing new dynamics in the energy sector following the United Arab Emirates’ (UAE) decision to exit the OPEC group of oil-exporting countries.

The UAE government stated that the decision was taken to prioritise “national interests”, while also signalling a shift in strategy in the global energy market.

At the same time, pressure on oil supplies is expected to continue in line with the United States’ plan to extend the blockade on Iranian ports.

President Donald Trump is said to have instructed his team to continue the policy to pressure Iran’s oil exports, as reported by The Wall Street Journal.