Rupiah Opens Weaker, Touches Rp 16,971 per US Dollar

Jakarta — The value of the rupiah in the spot market opened weaker on Monday, 16 March 2026, depreciating 13 points or 0.08 percent to the level of Rp 16,971 per US dollar.

The rupiah is expected to remain under pressure in the coming period, with potential weakness towards Rp 17,150 per dollar.

Pressure on the Garuda currency has been triggered by both global and domestic sentiments, ranging from surging world oil prices resulting from geopolitical conflict in the Middle East to increasing government debt interest payment burdens.

“For a one-week range, Rp 16,850 to Rp 17,150,” said Ibrahim to reporters, cited Sunday, 15 March 2026.

According to him, the primary pressure on the rupiah currently stems from escalating geopolitical tensions in the Middle East that have triggered surges in global energy prices.

World oil prices surged after Iran’s new leader, Mojtaba Khamenei, stated that the Strait of Hormuz would remain closed. The strait is a strategic passage through which approximately one-fifth of the world’s oil and gas supply flows.

The closure of this vital route has triggered a disruption in global energy supplies, regarded as one of the largest in the history of the world oil market.

The surge in energy prices has triggered market participants’ concerns about the potential for global inflation shocks. Brent crude oil prices, which serve as the global benchmark, were last traded around $100 per barrel.

Higher interest rates typically increase the attractiveness of dollar-based assets for global investors.

“When interest rates remain elevated, global capital flows tend to enter US dollar assets. This makes the dollar stronger and pressures developing nation currencies, including the rupiah,” he explained.