Rupiah Closes Weaker at Rp 18,014 per US Dollar

The rupiah exchange rate in the spot market closed down 34 points at Rp 18,014 per US dollar on Wednesday. The Jakarta Interbank Spot Dollar Rate (JISDOR) set by Bank Indonesia was at Rp 18,005 per US dollar.

Ibrahim Assuaibi, Director of PT Traze Andalan Futures, stated that the rupiah’s movement was influenced by the first-half 2026 state budget (APBN) deficit, which reached Rp 196.5 trillion, equivalent to 0.76 percent of gross domestic product (GDP). Although the deficit is lower than the 0.84 percent recorded in the same period last year, some economists view it as an early warning sign of increasing pressure on the state budget, particularly given the dynamics at the start of the year.

He explained that under the current budget structure, a weakening rupiah tends to accelerate spending more quickly than it boosts revenue, potentially narrowing the government’s fiscal space.

Another domestic factor affecting the rupiah was the release of foreign exchange reserve data by Bank Indonesia. The reserves increased to US$145.6 billion at the end of June, up from US$144.9 billion at the end of May, though they remained near a two-year low.

Globally, the US dollar index strengthened following developments in the Middle East conflict, with the US Central Command announcing a series of strikes against Iran. Additionally, the yield on US government bonds rose to 4.52 percent. Despite this, market participants remain sceptical about an interest rate hike at the Federal Reserve’s July meeting, though expectations for a September increase stand at nearly 60 percent.