Rupiah Closes at 17,877 per US Dollar

The rupiah exchange rate against the US dollar at the close of trading on Friday (14/8) strengthened by 50 points, or 0.28 percent, to Rp17,827 per US dollar compared with the previous close of Rp17,877 per US dollar.

Doo Financial Futures currency analyst Lukman Leong said the rupiah’s strengthening was influenced by the market’s positive response to President Prabowo Subianto’s speech on the 2027 State Revenue and Expenditure Budget Plan (RAPBN).

“The rupiah strengthened against the US dollar and the Jakarta Composite Index (IHSG) rose due to investors’ positive response to President Prabowo’s RAPBN speech. I see it as cautiously positive,” he told ANTARA in Jakarta on Friday.

In his speech, the President targeted economic growth of 6 percent, up from the 2026 state budget assumption of 5.4 percent, inflation of 2.5 percent, a budget deficit set at Rp671.2 trillion or 2.4 percent of gross domestic product (GDP) with total spending of Rp4,097 trillion, a 10-year government bond yield of 6.9 percent, and a rupiah exchange rate of Rp17,500 per US dollar, higher than the Rp16,500 per US dollar assumed in the 2026 state budget.

Furthermore, the Indonesian crude oil price was set at 75 US dollars per barrel, up from 70 US dollars per barrel. Crude oil lifting was set at 610 thousand barrels per day, in line with the 2026 assumption. Lastly, natural gas lifting was set at 954 thousand barrels of oil equivalent per day (BOEPD), down from 984 thousand BOEPD.

The poverty reduction target was set in the range of 6-6.5 percent, an improvement from the 2026 target of 6.5-7.5 percent, with an open unemployment rate of 4.3-4.87 percent, a human capital index of 0.575, and a Gini ratio of 0.362-0.367.

“The growth, rupiah, and deficit targets are still acceptable to investors,” Lukman said.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened today to Rp17,836 per US dollar from Rp17,882 per US dollar previously.