Rupiah Hits Rp17,304 per US Dollar, External Factors as Main Cause

Jakarta (ANTARA) - The rupiah exchange rate weakened by 123 points or 0.72 percent to Rp17,304 per US dollar at 13:32 WIB on Thursday, from the previous close at Rp17,181 per US dollar.

Currency and commodity economist Ibrahim Assuaibi assessed that this significant weakening was caused by the failure of negotiations between the US and Iran.

“One of the causes is first, external issues, where this week’s meeting between the US and Iran facilitated by Pakistan failed. Iran did not participate in those negotiations because the US had already violated the ceasefire rules by capturing an Iranian tanker passing through the Strait of Hormuz,” he said in an audio recording in Jakarta on Thursday.

On the other hand, Iran is said to be ready for a prolonged war with the US because the Land of the Mullahs no longer trusts Uncle Sam’s country.

These two conditions demanded by the US are what make Iran unable to accept them, as they are considered to violate Iran’s sovereign rights to manage the Strait of Hormuz without intervention.

From an internal perspective, the rise in Brent crude oil prices, currently reaching $103 per barrel, and West Texas Intermediate (WTI) at $98 per barrel, is likely to widen Indonesia’s budget deficit.

In addition, another issue is the Pertamina tanker that has not yet been able to exit the Strait of Hormuz due to the turmoil in the West Asian region.