Rupiah Exchange Rate Plummets: How to Prepare for Children's Education Costs Abroad?

JAKARTA, KOMPAS.com - The weakening of the Rupiah exchange rate against the US dollar presents a challenge for the education costs of children studying abroad.

Inevitably, the weakening exchange rate is causing the cost of education for children abroad to soar, potentially burdening family finances later in the year.

Financial planner and Founder of Finante.id, Rista Zwestika, said that for families with education payment obligations abroad, a strategy of purchasing US dollars gradually is actually safer than waiting for the exchange rate to fall.

“Because this need is certain and recurring, the averaging approach is usually more effective in reducing the risk of sudden exchange rate spikes,” she told Kompas.com, Friday (15/5/2026).

This figure is still down 67.5 points, or 0.39 percent, compared to yesterday’s closing.

She added that families can create a monthly or quarterly schedule for purchasing US dollars according to their education cost needs.

“That way, the exchange rate burden is more spread out and not too heavy when there is a sharp weakening of the Rupiah,” she said.

In addition, Rista said that it is also important to separate a special education account in foreign currency.

She also advised families to recalculate their projected living and education costs.

“And prepare additional buffer funds because the increase in the exchange rate usually also has an impact on the cost of living abroad,” she explained.

Rista believes that waiting for the dollar to fall is acceptable, but it is quite risky if the payment deadline is approaching.

“Therefore, it is better to focus on the certainty of needs rather than speculating on the direction of the exchange rate,” she concluded.

The costs that need to be covered include tuition fees, semester fees, and monthly living expenses in the destination country.

Another thing to consider is the difference in currency. Education costs abroad generally use foreign currency.

Therefore, it is best to prepare education funds in the currency of the destination country or in US dollars.

Investing in US dollars can be one option in planning education costs.

After knowing all the costs during the child’s education abroad, and after taking into account the inflation factor, the next step is to determine the appropriate investment instrument to develop the child’s education fund.

It should be noted that education funds are funds that must be available when needed.