Rupiah Hits Rp17,000, Airlangga: Other Currencies Also Weakening

Jakarta (ANTARA) - Coordinating Minister for the Economy Airlangga Hartarto responded to the rupiah’s exchange rate, which closed weaker on Tuesday afternoon at Rp17,105 per US dollar.

Airlangga, when answering journalists’ questions at the Presidential Palace Complex in Jakarta on Tuesday, said that the weakening of the currency is not only experienced by the rupiah, but also by the currencies of other countries.

“That’s not just the rupiah; various other currencies are the same,” Airlangga said briefly.

It is known that the rupiah exchange rate at the close of trading on Tuesday weakened by 70 points or 0.41 percent to Rp17,105 per US dollar from the previous close at Rp16,980 per US dollar.

Currency and commodity analyst Ibrahim Assuaibi said that this weakening is influenced by the potential escalation in the Middle East between the US and Iran.

“Investors are preparing for potential escalation in the Middle East ahead of the deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz. Disruptions to tanker traffic in recent weeks have tightened supply expectations and increased risk premiums across oil markets,” he said in a written statement in Jakarta on Tuesday.

Iran rejected a proposal from the US for a 45-day ceasefire and the gradual reopening of the Strait of Hormuz, alongside broader negotiations on lifting sanctions and reconstruction.

Meanwhile, Iran’s demands include a permanent cessation of hostilities, binding guarantees against future attacks, the lifting of sanctions, and compensation for damages.

“Trump reaffirmed that Tuesday’s deadline is firm and warned that failure to comply could trigger US attacks on Iranian infrastructure, including power plants and bridges. He also said that Iran could be eliminated quickly, underscoring the rising risk of broader escalation,” said Ibrahim.

This confrontation is seen to have disrupted global energy flows and pushed oil prices higher, triggering inflation concerns and complicating monetary policy prospects.

Investors are also awaiting important US inflation data to be released on Friday, which is expected to provide clues about the Fed’s interest rates.

The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia today also moved weaker to Rp17,092 per US dollar from the previous Rp17,037 per US dollar.