Rupiah Opens Weaker Near 18,000 as OECD Reports Slowing Income Tax Revenue in Indonesia

The Indonesian rupiah exchange rate against the US dollar is predicted to remain volatile but close stronger in today’s trading. Based on Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (Jisdor), the rupiah stood at 17,960 per US dollar on Friday, 3 July 2026, strengthening by 34 points from the previous rate of 17,994 on Thursday, 2 July 2026. Meanwhile, in the spot market on Monday, 6 July 2026, up to 09.00 WIB, the rupiah was transacted at 17,993 per US dollar, weakening by 30 points or 0.17 percent from the previous position of 17,963 per US dollar. Economist and money market observer Ibrahim Assuaibi stated that Indonesia’s income tax revenue engine is beginning to lose steam. The OECD Revenue Statistics in Asia and the Pacific 2026 report recorded that revenue from taxes on income, profits, and capital gains showed practically no growth compared to the previous year. OECD data showed that income tax revenue only rose from 1,061.24 trillion rupiah in 2023 to 1,061.94 trillion rupiah in 2024. The increase was only around 700 billion rupiah, equivalent to 0.07 percent annually. This figure is far lower than the growth of Indonesia’s total tax revenue. In the same period, total tax revenue increased from 2,517.66 trillion rupiah to 2,620.67 trillion rupiah, or an increase of approximately 103 trillion rupiah. Upon closer examination, the slowing growth of income tax was influenced by a decline in corporate income tax receipts. The OECD noted that corporate tax revenue fell from 829.66 trillion rupiah in 2023 to 818.30 trillion rupiah in 2024, a reduction of around 11.36 trillion rupiah. Conversely, personal income tax revenue still recorded growth, with payments from this group rising from 231.59 trillion rupiah to 243.64 trillion rupiah, an increase of approximately 12.05 trillion rupiah. Although growth is slowing, income tax remains one of the main sources of state revenue. The rupiah is expected to fluctuate but close stronger in the range of 17,910 to 17,970 per US dollar. Meanwhile, investors continue to monitor negotiations between Washington and Tehran, after US President Donald Trump said he believed Iran had agreed to almost everything needed, signalling confidence that discussions are moving in the right direction.