Rupiah Exchange Rate Breaches 17,500 per US Dollar
The rupiah exchange rate reached a new psychological level on Tuesday morning, 12 May 2026, moving above 17,500 against the US dollar. Google data showed that by 11:00, the rupiah had weakened to 17,509 per US, whileBloombergdataindicatedthespotrateatthesametimewasrecordedat17, 512perUS, or a weakening of 98 points.
The dollar exchange rate has continued to strengthen against the rupiah since the beginning of the week. Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (Jisdor) data showed the rupiah on Monday, 11 May 2026, at 17,415 per US.Thiswasweakercomparedtotheendofthepreviousweek, whichwasrecordedat17, 375perUS.
Currency and commodity analyst as well as Director of PT Traze Andalan Futures, Ibrahim Assuabi, stated that the exchange rate movement is influenced by external and domestic factors. From external factors, the significant weakening of the rupiah is influenced by the escalating conflict in the Middle East.
Particularly after the United States rejected a peace proposal made by Iran, mediated by Pakistan and Qatar. “This rejection creates new tensions, because unexpectedly, small attacks are still occurring in the Strait of Hormuz,” said Ibrahim in his statement on Tuesday, 12 May 2026.
This means, he said, the Strait of Hormuz is still heating up, even though statements have emerged from high-ranking officials of the conflicting countries that the war is over. Separately, the United Arab Emirates also attacked an oil refinery on Lavan Island, Iran.
The current rise in global oil prices is also affecting the exchange rate movement. “This is what is causing the dollar index to strengthen significantly again,” said Ibrahim.
Meanwhile, on the internal side, Ibrahim stated that economic growth in the first quarter of 2026, which reached 5.61 percent, does not immediately improve the economy and strengthen the rupiah. Because the components forming growth in the first quarter were more driven by government spending and consumption, while investment has not moved significantly.
Although this economic growth is quite high, the impact of tensions in the Strait of Hormuz poses a threat to the domestic industry. Particularly through the threat of workforce reduction.