Rupiah Drops Near Rp 17,900 Following BPS Inflation Data and Indonesia's Trade Surplus
The exchange rate of the rupiah against the US dollar is predicted to remain volatile, having closed weaker in today’s trading. According to the Jakarta Interbank Spot Dollar Rate (Jisdor) from Bank Indonesia, the rupiah stood at Rp 17,863 on Tuesday, 2 June 202cap, representing a 20-point strengthening from the previous rate of Rp 17,883 on Friday, 29 May 2026. However, in spot market trading on Wednesday, 3 June 2026, by 09:07 WIB, the rupiah was being traded at Rp 17,896 per US dollar, weakening by 57 points or 0.32 per cent from its previous position of Rp 17,839.
Economic and money market observer Ibrahim Assuaibi noted that Statistics Indonesia (BPS) recorded annual inflation (year-on-year) of 3.08 per cent in May 2026. The Consumer Price Index (CPI) rose from 111.09 in April 2026 to 111.40 in May 2026. On a year-to-date (ytd) basis, inflation was recorded at 1.35 per cent, while the month-to-month (mtm) rate stood at 0.28 per cent.
Furthermore, Indonesian manufacturing activity has returned to the expansion zone. According to the S&P Global report, Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) rose to a level of 50.0 in May 2026, after contracting to 49.1 in April 2026. Despite these positive signals, the industrial sector remains shadowed by the pressure of surging raw material costs and supply chain disruptions that are hindering production rates. The May PMI indicates stable manufacturing operational conditions following the previous month’s contraction.
This improvement was primarily supported by an increase in domestic demand, which drove a rise in new orders for two consecutive months. The increase in new orders in May 2026 was the fastest since February. Additionally, BPS reported that Indonesia’s trade surplus continued through April 2026, despite ongoing global geopolitical and geo-economic uncertainties. Non-oil and gas export performance, particularly from the processing industry sector, served as the main pillar of the national trade surplus. The cumulative trade surplus for January-April 2026 reached US$5.64 billion, marking 72 consecutive months of surplus since May 2020.