Rupiah Closes at 17,105 per US Dollar

The exchange rate of the rupiah fell to 17,105 per US dollar at the close of trading on Tuesday, 7 April 2026. Director of PT Traze Andalan Futures, Ibrahim Assuaibi, predicts that the rupiah will close weaker in the range of Rp 17,100-Rp 17,150 per US dollar tomorrow.

According to Ibrahim, one of the reasons for the strengthening of the US dollar index is that investors are preparing for the potential escalation of conflict in the Middle East ahead of the deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz.

“Disruptions to tanker traffic in recent weeks have tightened supply expectations and increased risk premiums across the oil markets,” said Ibrahim in a written statement on Tuesday, 7 April 2026.

Ibrahim explained that Iran rejected the 45-day ceasefire proposal. Iran called for a permanent cessation of hostilities, binding guarantees against future attacks, lifting of sanctions, and compensation for damages.

Meanwhile, on the domestic front, Ibrahim said economists assess that commodity-based subsidy designs open loopholes for consumption by affluent groups. “The energy subsidy scheme, which is not yet on target, is in the spotlight amid the global oil price surge,” said Ibrahim.

Ibrahim assessed that the surge in world oil prices due to global conflicts is a severe blow to Indonesia’s fiscal condition amid high dependence on fuel imports. Because, price increases far above the state budget assumptions enlarge the energy subsidy burden. However, on the other hand, the government’s fiscal space is deemed increasingly limited to dampen such volatility.