Rupiah Closes at 17,877 per US Dollar

The rupiah exchange rate against the US dollar closed stronger on Friday (14/8), gaining 50 points or 0.28% to reach Rp17,827 per dollar, compared to the previous close of Rp17,877 per dollar. Doo Financial Futures currency analyst Lukman Leong stated that the rupiah’s strengthening was influenced by a positive market response to President Prabowo Subianto’s speech on the 2027 State Budget Draft. ‘The rupiah strengthened against the US dollar and the Jakarta Composite Index rose due to positive investor reaction to President Prabowo’s state budget speech. I see it as cautiously positive,’ he said in Jakarta on Friday. In his speech, the President targeted economic growth of 6%, up from the 2026 state budget assumption of 5.4%, inflation at 2.5%, and a budget deficit set at Rp671.2 trillion or 2.4% of Gross Domestic Product, with total spending of Rp4,097 trillion. The 10-year government bond yield was assumed at 6.9%, with the rupiah exchange rate at Rp17,500 per US dollar, higher than the Rp16,500 assumed in the 2026 budget. The Indonesian crude oil price was set at 75 US dollars per barrel, up from 70 US dollars per barrel, with oil lifting at 610,000 barrels per day, consistent with the 2026 assumption. Gas lifting was targeted at 954,000 barrels of oil equivalent per day, a decrease from 984,000 BOEPD. The poverty reduction target was set at 6-6.5%, an improvement from the 2026 target of 6.5-7.5%, with an open unemployment rate of 4.3-4.87%, a human capital index of 0.575, and a Gini ratio of 0.362-0.367. Lukman noted that the growth, rupiah, and deficit targets were still acceptable to investors. Bank Indonesia’s Jakarta Interbank Spot Dollar Rate also strengthened to Rp17,836 per US dollar from the previous Rp17,882 per US dollar.