Rupiah breaches Rp17,700 per US dollar as Airlangga cites high dollar demand

The rupiah exchange rate against the US dollar continued its depreciation trend, touching the level of Rp17,706 per US dollar on Tuesday (19 May 2026). Coordinating Minister for Economic Affairs Airlangga Hartarto said the rupiah weakness is influenced by global factors and the high demand for dollars domestically.

“Global factors are also very influential,” Airlangga said when met at the Office of the Coordinating Ministry for Economic Affairs, Tuesday (19 May 2026).

According to him, dollar demand increases during the Hajj season. In addition, many companies are also making dividend payments after the quarterly financial reporting season.

“During this Hajj month, demand for dollars is also high. After the financial reports, dividend payments are mostly in these months,” he said.

Airlangga added that rising global oil prices are also putting pressure on the rupiah. “So the demand is indeed high. Added to the fact that oil prices are still rising, making the external factors very strong,” he said.

Despite the rupiah weakening, Airlangga believes the situation could benefit exporters by increasing their exchange rate advantages. Because exporters potentially obtain a higher rupiah value.

“If you are export-oriented, entrepreneurs can actually achieve higher competitiveness and also receive more rupiah,” he said.

The government, according to Airlangga, is preparing policies to strengthen foreign exchange reserves and optimise national export commodities. However, he did not detail the steps.

“The policy will later encourage strengthening our foreign exchange and the optimisation of commodities that can be driven to become exports,” he said.

Airlangga hopes exchange rate conditions can improve in the second half of this year. “Hopefully the second half will be better,” he hoped.