Rupiah Remains Above 17,100 Level in Afternoon Trading, Pressured by Middle East Geopolitical Sentiment
JAKARTA, KOMPAS.com - The rupiah exchange rate in the spot market weakened again at the close of trading on Monday (13/4/2026). The Garuda currency depreciated by 1 point or 0.01 percent to the level of Rp17,105 per US dollar.
Currency and commodity analyst, Ibrahim Assuaibi, assessed that the weakening of the Indonesian currency was caused by increasing geopolitical tensions in the Middle East, which could potentially affect financial market stability.
He explained that the United States’ move to impose a blockade followed the failure of peace negotiations between the US and Iran over the weekend.
US President Donald Trump stated that the US Navy would begin blockading the Strait of Hormuz, thereby escalating the conflict and endangering the previously agreed two-week ceasefire.
The US Central Command stated that the blockade would be enforced against all maritime traffic entering and exiting Iranian ports starting at 10:00 local time.
The policy covers ships from various countries operating in Iranian ports and coastal areas, including the Arabian Gulf and Gulf of Oman.
Nevertheless, the US emphasised that it would not interfere with the freedom of navigation for ships transiting the Strait of Hormuz to non-Iranian ports. Additional information will also be provided to commercial shipping actors through official notices before the policy is implemented.
On the other hand, Iran’s Revolutionary Guard stated that any military ships approaching the Strait of Hormuz would be considered a violation of the ceasefire and would be dealt with firmly.
Ibrahim added that the situation is also driving up energy prices, which impacts inflation.
The latest consumer price index data shows a surge in inflation, strengthening expectations that the US central bank will not cut interest rates soon.
Market participants are now awaiting the release of the US producer price index (PPI) data as a forward indicator of inflation direction.
From the domestic side, the Asian Development Bank (ADB) projects Indonesia’s economic growth to reach 5.2 percent in 2026.
This figure is higher than the previous year’s realisation of 5.1 percent, but still below the government’s target of 5.4 percent.
The projection is considered to still be within the Bank Indonesia (BI) inflation target range of 2.5±1 percent.