Rupiah Opens Lower at IDR 18,004 Due to May Inflation and Uncertainty in the Middle East

The Rupiah’s exchange rate against the US dollar is predicted to remain volatile but closed lower in today’s trading. According to data from the Jakarta Interbank Spot Dollar Rate (Jisdor) of Bank Indonesia, the Rupiah’s exchange rate against the US dollar was at IDR 17,931 on Wednesday, June 3, 2026. This position weakened by 68 points from the previous rate of IDR 17,863 on Tuesday, June 2, 2026. In spot market trading on Thursday, June 4, 2026, until 09:04 WIB, the Rupiah was traded at IDR 18,004 per US dollar. This position weakened by 37 points or 0.21 percent from the previous position of IDR 17,967 per US dollar. Economic and money market observer, Ibrahim Assuaibi, said that the Rupiah’s sentiment worsened after May 2026 inflation reached 0.28 percent month-to-month. This position increased from April 2026, which was 0.13 percent, where the Consumer Price Index (CPI) increased from 111.09 in April 2026 to 111.40 in May 2026. Year-to-date, Indonesia recorded an inflation of 3.08 percent. Several factors that are considered to have the most influence on the movement of May 2026 inflation include food prices, energy prices, government-regulated prices, and the weakening of the Rupiah’s exchange rate. In addition, Indonesia’s trade balance recorded a surplus of US$89.1 million in April 2026, successfully maintaining this trend for 72 consecutive months since May 2020. Based on data from the Central Statistics Agency (BPS), the surplus in April 2026 was mainly supported by the performance of non-oil and gas trade, which recorded a surplus of US$3.53 billion. However, statistically, the trade surplus in April narrowed sharply. This is due to pressure on purchasing power and external resilience, as a result of disruptions in the global supply due to the blockade of the Strait of Hormuz by the IRGC, with no clear indication of when it will be reopened. “The Rupiah’s currency is volatile but closed lower in the range of IDR 17,960 - IDR 18,030,” he said. For information, investors continue to monitor developments in the Middle East, while Israel maintains military operations in southern Lebanon as Iran fires ballistic missiles at Kuwait and Bahrain. In addition, US forces carried out attacks on Qeshm Island, Iran, according to the US Central Command in a post on X. The island is located near the Strait of Hormuz, a vital waterway through which about a fifth of the world’s oil consumption passes.