Rupiah Claimed to Be More Resilient Than Currencies of Other Countries

JAKARTA, KOMPAS.com - The rupiah exchange rate weakened at the start of trading on Tuesday (5/5/2026). The rupiah opened at the level of Rp 17,420 per US dollar. Pressure emerged amid global turmoil. The conflict in the Middle East has triggered a surge in energy prices and increased pressure on financial markets. Although weakening, the rupiah’s movement is considered still under control. The rupiah’s position is relatively better compared to a number of other developing countries’ currencies. Head of the Monetary and Securities Asset Management Department at Bank Indonesia, Erwin G. Hutapea, stated that this trend is in line with the global market. “The rupiah’s movement is still in line with the majority of other emerging market currencies,” Erwin said in Jakarta on Tuesday (5/5/2026). Bank Indonesia continues to maintain exchange rate stability. Interventions are carried out in various markets, including the offshore Non-Deliverable Forward (NDF), spot transactions, Domestic Non-Deliverable Forward (DNDF), and the purchase of government securities in the secondary market. “Bank Indonesia will continue to be present in the market to ensure that the market mechanism runs well in order to maintain the rupiah exchange rate stability in accordance with its fundamental value,” Erwin said. Rupiah pressure coincides with the rise in world oil prices. This condition amplifies the impact on the domestic economy. Oil prices surged sharply at the start of the week. Brent crude rose by 6.27 US dollars to 114.44 US dollars per barrel. West Texas Intermediate crude rose by 4.48 US dollars to 106.42 US dollars per barrel. Currency and Commodities Analyst Ibrahim Assuaibi assessed that the combination of a weak rupiah and high oil prices is pushing up prices of goods domestically. “We see that today all prices are experiencing a fairly significant increase. We see that imported goods, electronics, fertiliser, then commodities, soybeans, wheat, yes, these are also experiencing increases,” Ibrahim said.