Rupiah Plunges to Rp 18,014 per US Dollar Amid Middle East Geopolitical Escalation

The rupiah continued to weaken against the United States dollar, even touching Rp 18,014 per US dollar. In spot market trading on Wednesday, 8 July 2026, until 14:18 WIB, the rupiah was transacted at Rp 18,014 per US dollar. This position weakened by 34 points, or 0.19 percent, from the previous position of Rp 17,980 per US dollar.

Meanwhile, based on Jakarta Interbank Spot Dollar Rate (Jisdor) data from Bank Indonesia, the rupiah exchange rate against the US dollar was at Rp 17,988 on Tuesday, 7 July 2026. This position strengthened by 11 points from the previous rate of 17,999 on Monday, 6 July 2026.

Analyst from Doo Financial Futures, Lukman Leong, estimated that the escalating geopolitical situation in the Middle East could be a factor pressuring the rupiah. “The major US strikes on Iran as retaliation for attacks on commercial ships in the Strait of Hormuz,” he said on Wednesday.

It is known that the US launched a series of new strikes on Iran, with US Central Command (CENTCOM) stating the operation was in response to Iranian attacks on three commercial vessels in the Strait of Hormuz. On Tuesday, 7 July 2026, Iranian national media IRIB reported that a Qatari vessel, Al-Rekayyat, attempted to pass through the Strait of Hormuz via the Omani route with US Navy support. However, the vessel was targeted after several warnings were issued.

Another sentiment came from Indonesia’s rising foreign exchange reserves. Bank Indonesia reported that the country’s reserve position at the end of June 2026 reached US$145.6 billion, up slightly by US$700 million from the end of May 2026 position of US$144.9 billion. The increase in the foreign exchange reserves position in June 2026 was mainly driven by tax and service revenues. On the other hand, this development occurred amidst government foreign debt payments and the rupiah exchange rate stabilisation policy by Bank Indonesia, in response to high global financial market uncertainty. The foreign exchange reserves position at the end of June 2026 was equivalent to financing 5.5 months of imports or 5.4 months of imports and government foreign debt payments, and is above the international adequacy standard of around 3 months of imports.