Rupiah Plunges Further and Hits Rp 17,424 per US Dollar

JAKARTA, KOMPAS.com - The rupiah exchange rate weakened again at the close of trading on Tuesday (5/5/2026). The rupiah fell 30 points or 0.17 percent to the level of Rp 17,424 per United States dollar.

Pressure came from the escalation of conflict in the Middle East. Tensions between the United States and Iran intensified again at the start of the week.

Military attacks occurred in the Gulf region. This situation shattered the previously fragile ceasefire and increased the risk of disruptions to global energy supplies.

The United States military reportedly destroyed six small Iranian attack boats in the Strait of Hormuz.

“The US military stated that it had destroyed six small Iranian attack boats during the battle in the strait. Tensions escalated further after Iranian attacks targeted infrastructure in the United Arab Emirates, including the oil terminal at Fujairah port,” said Currency and Commodities Analyst Ibrahim Assuaibi.

The market is also monitoring US President Donald Trump’s steps through the “Freedom Project” programme. This programme aims to escort ships stranded in the Gulf region and open safer shipping lanes.

The US military has begun escorting commercial ships. This step is seen as helping distribution in the short term, but it does not address the root of the conflict.

Uncertainty is keeping the oil market sensitive. Every military development directly triggers price reactions.

This condition is lifting US government bond yields. Non-yielding assets like precious metals are also under pressure.

Domestic data shows the economy remains strong. The Central Statistics Agency recorded first-quarter 2026 economic growth at 5.61 percent year-on-year.