Rupiah Slumps to 17,405, Airlangga Mentions Hajj Season
Coordinating Minister for the Economy Airlangga Hartarto responded to the weakening of the rupiah exchange rate against the US dollar on Tuesday morning. The rupiah was recorded to have weakened by 11 points or 0.07 percent to the level of Rp17,405 per US dollar from the previous close of Rp17,394 per US dollar.
According to Airlangga, the weakening of the currency against the US dollar is also experienced by various countries, and this condition is considered normal, especially during the Hajj pilgrimage period.
“Regarding the rupiah, various countries are indeed experiencing weakening against the USD, and it usually happens during the Hajj pilgrimage when demand for dollars increases,” he said at a press conference on first-quarter 2026 economic growth at his office on Tuesday, 5 May 2026.
He stated that the increase in dollar demand is also influenced by the second quarter period, which typically coincides with dividend payments, thus increasing foreign exchange needs. The government, he said, will continue to monitor these developments, including by comparing conditions in other countries.
Airlangga explained that the government has prepared anticipatory measures together with Bank Indonesia, including currency swap cooperation with China as well as several other countries such as Japan and South Korea.
In addition, he said, the government is also preparing a composition of debt financing and the issuance of securities in denominations other than the US dollar, such as the Chinese yuan and Japanese yen, as an effort to ease pressure on the US dollar.
Previously, the Head of the Monetary and Asset Management Department of Bank Indonesia (BI), Erwin Gunawan Hutapea, stated that the movement of the rupiah exchange rate since the beginning of the Middle East conflict until now has still been in line with the majority of other developing country currencies.
“Bank Indonesia will continue to be present in the market to ensure that the market mechanism runs well,” Erwin said in a written statement on Tuesday, 5 May 2026.
Erwin revealed that several emerging market currencies have experienced pressure during this period. The Philippine peso, for example, was recorded to have weakened by 6.58 percent, the Thai baht fell 5.04 percent, and the Indian rupee weakened 4.32 percent. Similarly, the Chilean peso fell 4.24 percent, the rupiah weakened 3.65 percent, and the Korean won was down 2.29 percent.
To maintain exchange rate stability, Bank Indonesia is optimising interventions in the foreign exchange market through non-deliverable forward (NDF) transactions in the offshore market, spot transactions, and domestic non-deliverable forward (DNDF) in the domestic market.
In addition, the central bank is also purchasing government securities in the secondary market. These steps are carried out consistently and in a measured manner to maintain the stability of the rupiah exchange rate amid ongoing global pressures.