Rupiah Closes Corrected by 39 Points on 16 March 2026
The rupiah weakened against the US dollar on Monday, 16 March 2026, depreciating by 39 points or 0.23 percent to Rp16,997 per dollar compared to the previous close of Rp16,958 per dollar. This decline was reflected in the Jakarta Interbank Spot Dollar Rate (JISDOR) set by Bank Indonesia, which also weakened to Rp16,990 per dollar from its previous level of Rp16,934 per dollar.
Muhammad Amru Syifa, Research and Development analyst at Indonesia Commodity & Derivatives Exchange (ICDX), attributed the pressure on the rupiah primarily to strengthening US dollar performance in global markets. “Pressure on the rupiah is mainly stemming from US dollar strengthening in global markets, coinciding with increased demand for safe-haven assets amid geopolitical uncertainty, particularly the ongoing conflict in the Middle East,” Amru explained in Jakarta on Monday.
Tensions in the Middle East not only trigger volatility in financial markets but also risk driving up global energy prices, potentially worsening worldwide inflation.
From a global macroeconomic perspective, market participants are monitoring US inflation developments, which remain at approximately 2.4 percent on an annual basis. This relatively stable yet above-target figure reinforces expectations that the Federal Reserve will maintain elevated interest rates for a longer period.
High interest rates in the US tend to attract capital outflows from emerging markets back to the United States, exerting additional pressure on the rupiah’s exchange rate.
Although the rupiah approached the psychological level of Rp17,000, domestic economic fundamentals are assessed to remain solid. Several supporting factors underpin this assessment.
To curb volatility, Bank Indonesia is expected to continue strengthening coordination with the government. Intervention measures in the foreign exchange market and ensuring adequate dollar liquidity in the domestic market are crucial to maintaining foreign investor confidence in the national economy.