Rupiah Plunges, Airlangga: Hajj Factor and Dividend Payments Boost Demand for US Dollar

JAKARTA, KOMPAS.com - Coordinating Minister for the Economy Airlangga Hartarto stated that the pressure on the rupiah exchange rate is not only occurring in Indonesia but is also being experienced by many countries alongside the strengthening of the US dollar.

According to Airlangga, the current weakening of the rupiah is also influenced by seasonal factors, particularly the increased need for foreign currency ahead of the Hajj pilgrimage season as well as dividend payments in the second quarter.

“Regarding the rupiah, various countries are indeed experiencing weakening against the US dollar, and usually during the Hajj pilgrimage, demand for the dollar increases,” said Airlangga after the press conference on First Quarter 2026 GDP Growth at the Coordinating Ministry for the Economy on Tuesday (5/5/2026).

“So we will monitor those needs, and usually in the second quarter, there are also dividend payments. So demand for the dollar is high,” added Airlangga.

To maintain exchange rate stability, the government together with Bank Indonesia (BI) has prepared several anticipatory measures, including strengthening international cooperation through currency swap schemes.

“And we will continue to monitor how it is with other countries, but we have prepared with Bank Indonesia regarding currency swaps with China and with various other countries including Japan, Korea, and others,” he explained.

“Thus, we hope that going forward we will continue to prepare the composition related to the level of debt that we can, securities that we can obtain that are from China or Yen to maintain pressure against the US dollar,” Airlangga concluded.

For information, the rupiah exchange rate weakened again at the close of trading on Tuesday (5/5/2026). The rupiah weakened by 30 points or 0.17 percent to the level of Rp 17,424 per US dollar.

The pressure stems from the escalation of conflict in the Middle East. Tensions between the United States (US) and Iran have increased again at the beginning of the week.

This situation has collapsed the previously fragile ceasefire and increased the risk of disruption to global energy supplies.

The US military is reported to have destroyed six small Iranian attack vessels in the Strait of Hormuz.

Tensions have intensified after Iran attacked energy infrastructure in the United Arab Emirates.

Targets included an oil terminal at Fujairah port.