Rupiah Continues to Weaken to Rp 17,489 Despite Rising Consumer Confidence in Indonesia's Economy

Jakarta, VIVA – The rupiah’s exchange rate against the US dollar is predicted to remain volatile but closed weaker in trading today. According to data from the Jakarta Interbank Spot Dollar Rate (Jisdor) of Bank Indonesia, the rupiah’s rate against the US dollar stood at Rp 17,415 on Monday, 11 May 2026. This position represented a weakening of 40 points from the previous rate of Rp 17,375 in trading on Friday, 8 May 2026. Meanwhile, in spot market trading on Tuesday, 12 May 2026, up to 09:04 WIB, the rupiah was traded at Rp 17,489 per US dollar. This position weakened by 75 points or 0.43 percent from the previous level of Rp 17,414 per US dollar. Economic and money market observer, Ibrahim Assuaibi, stated that Bank Indonesia’s (BI) Consumer Survey for April 2026 indicated that public confidence in the national economic conditions remained in the optimistic zone. This was reflected in the Consumer Confidence Index (IKK) for April 2026, which stood at 123.0, a slight increase from March 2026 at 122.9. An index level above 100 indicates that consumers still hold optimism regarding economic conditions. Bank Indonesia (BI) noted that the sustained consumer confidence was primarily driven by an increase in the Current Economic Conditions Index (IKE). In April 2026, the IKE was recorded at 116.5, higher than the previous month’s figure of 115.4. The rise in IKE shows that public perceptions of current economic conditions, including job availability, income, and purchasing power, experienced improvement compared to the previous month. The IKK uses a reference year with a value of 100. This means the consumer confidence index for April 2026 at 123 is in the optimistic zone or above the reference value. Meanwhile, the Consumer Expectations Index (IEK) remained in the optimistic level at 129.6. However, this figure was slightly lower than March 2026, which reached 130.4. The slight decline in IEK indicates that consumers still have positive confidence in future economic prospects, albeit with a slightly more moderate level of optimism compared to the previous month. “The rupiah is volatile but closed weaker in the range of Rp 17,410–Rp 17,460,” he said. For information, US President Donald Trump stated that Iran’s response to the US peace proposal was “completely unacceptable,” thereby increasing geopolitical risks.