Rupiah Closes 0.2% Stronger as US Dollar Drops to Rp17,830
The rupiah exchange rate successfully ended the start of this month with gains against the US dollar. According to Refinitiv data, at the close of trading on Tuesday (2/6/2026), the rupiah strengthened by 0.20% to the level of Rp17,830/US$. This appreciation simultaneously broke the trend of rupiah depreciation seen over five consecutive trading days.
Throughout today’s trading, the rupiah exhibited significant volatility. The ‘Garuda’ currency initially opened 0.08% higher at Rp17,850/US, thenfacedpressure, touchingRp17, 892/US, before finally reversing to strengthen by the close of trade. On the other hand, the US Dollar Index (DXY), which measures the strength of the greenback against six major world currencies, weakened by 0.12% to 99.081 as of 15:00 WIB.
The rupiah’s strength in today’s trading was influenced by both domestic and external sentiments. Domestically, Bank Indonesia continues to calibrate policy instruments in the foreign exchange market to maintain the stability of the rupiah exchange rate. Through Regulation of the Member of the Board of Governors Number 7 of 2026, the central bank officially lowered the limit for US dollar purchase transactions without underlying documents from the previous US$100,000 to US$50,000 per April 2026. This limit is further narrowed to US$25,000 per participant per month, effective from early June 2026.
This policy of tightening transaction recording in the spot market is accompanied by an expansion of relaxation in the derivative market. For instruments such as sell forwards and swaps, the transaction limit without underlying documentation has been increased to US$10 million per transaction. Market participants are also being encouraged to utilise Local Currency Transaction (LCT) schemes in bilateral trade. As of April 2026, the LCT transaction volume has reached US$22.61 billion.
However, regarding trade data, the Central Bureau of Statistics (BPS) noted that Indonesia’s trade balance surplus shrank sharply in April 2026. The trade surplus was only US$90 million, a significant drop from the March 2026 position of US$3.32 billion. This contraction in the surplus occurred amidst a surge in imports. Indonesia’s import value rose by 22.49% in April 2026 to US$25.21 billion, while exports remained higher at US$25.30 billion, despite lower growth of 21.98%.
Externally, the weakening of the US dollar in the global market has provided room for the strengthening of emerging market currencies, including the rupiah. This condition caused pressure on the rupiah to ease slightly by the end of today’s trading.