Rupiah Closes at All-Time Low of Rp 17,529 per US Dollar, Here Are the Culprits

JAKARTA, KOMPAS.com - The rupiah exchange rate against the US dollar continued to plummet at the close of trading in the spot market on Tuesday (12/5/2026).

According to Bloomberg data, the Garuda currency closed weaker by 115 points or 0.66% at the level of Rp 17,529 per US dollar.

This position marks the lowest closing exchange rate for the rupiah against the US dollar in history, or all-time low (ATL).

The rupiah’s weakening against the US dollar also occurred in the Jisdor rate. As quoted from the official Bank Indonesia website, the Jisdor rate today is at Rp 17,514 per US dollar, weakening by 99 points from yesterday’s level of 17,415.

One of the factors is the geopolitical sentiment in the Middle East.

Currently, negotiations to end the war between the United States and Iran are considered to be in a fragile condition.

Tehran’s response to the proposal submitted by Washington highlights sharp differences between the two countries, thus reigniting increased geopolitical tensions.

“Negotiations to end the war between the United States and Iran appear fragile, with Tehran’s response to the US proposal highlighting stark differences that are causing tensions to rise again,” said Ibrahim to reporters on Tuesday afternoon.

US President Donald Trump stated on Monday that the ceasefire with Iran is in a “critical condition”. That statement refers to the failure to reach an agreement on several major demands from Iran.

Some of those demands include halting hostilities on all fronts, lifting the US naval blockade, resuming Iran’s oil sales, and compensation for war damages.

In addition, Tehran has reaffirmed its sovereignty over the Strait of Hormuz, a strategic route handling about one-fifth of global oil and liquefied natural gas flows.

Tensions in the region are a concern for markets because they have the potential to disrupt the world’s energy supply chain.

Amid this increasing uncertainty, the Trump administration on Monday announced plans to loan 53.3 million barrels of crude oil from the US Strategic Petroleum Reserve (SPR). This step is an effort to dampen global oil market volatility.

Based on ship tracking data, shipments of crude oil from the US SPR are currently heading to Turkey.