Rupiah Exchange Rate Closes Weaker by 28 Points on 27 February 2026
The rupiah weakened by 28 points, or approximately 0.17%, closing at Rp16,787 per US dollar during trading in Jakarta on Friday 27 February 2026. This represented a decline from the previous close of Rp16,759 per US dollar.
The currency weakness was also mirrored in Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR), which moved weaker to Rp16,779 per US dollar from the previous level of Rp16,758 per US dollar.
Money market observer Ibrahim Assuaibi attributed the rupiah’s depreciation to rising geopolitical tensions between Iran and the United States. Washington was reported to be deploying more naval vessels to the Middle East as a military threat if Tehran rejected a nuclear agreement. Discussions regarding Tehran’s nuclear ambitions concluded on Thursday 26 February without a clear agreement, adding to market uncertainty. Although both sides signalled they would resume negotiations in Vienna the following week, market participants remained cautious.
Beyond geopolitical concerns, uncertainty surrounding the US economy also weighed on the rupiah. Following the US Supreme Court’s decision to overturn portions of President Donald Trump’s trade tariffs, a new tariff announcement emerged under a different legal framework. This sparked concerns about further global economic disruption from these import duties.
From a monetary policy perspective, markets reassessed the Federal Reserve’s policy trajectory. Persistently high inflation shifted expectations for interest rate cuts downward.
Domestically, negative sentiment arose from US trade policy targeting Indonesian products. The United States formally imposed retaliatory tariffs on solar cells and panels imported from Indonesia, with general subsidy rates reaching 104.38%. This exceptionally high tariff was predicted to suppress export performance in Indonesia’s renewable energy sector to the American market, ultimately creating negative sentiment towards the stability of the rupiah’s exchange rate in the spot market.
Separately, the rupiah faced pressure amid rising yields on 10-year State Securities (SBN), which breached the 6.45% level during trading on Friday 20 February.