Rupiah Slumps to Rp 17,854 as Rating Agencies Highlight Controversy over DSi Formation

Jakarta, Viva – The Indonesian rupiah against the US dollar is predicted to remain volatile but closed weaker today. According to BI’s Jakarta Interbank Spot Dollar Rate (JISdor), the rupiah stood at Rp 17,789 on Tuesday, 26 May 2026, a 46-point drop from Monday’s rate of Rp 17,743. Spot trading on Thursday, 28 May 2026, until 09:35 WIB saw the rupiah at Rp 17,854 per US dollar, a 53-point or 0.30% decline from the previous level of Rp 17,801.

Economic and currency market observer Ibrahim Assuaibi said the government’s decision to establishing a state-owned export entity, PT Danantara Sumberdaya Indonesia (DSi), has sparked market worries and scrutiny from global rating agencies. He noted that centralising primary commodity exports could disrupt trade mechanisms, with rating agencies like S&P indicating the policy may not be implemented quickly, potentially increasing trade disruption risks if poorly executed. Moody’s has also highlighted potential changes in trade patterns, which could create new imbalances in trade and capital flows.

Assuaibi added that foreign capital outflows from Indonesia are a natural consequence, causing the rupiah to weaken further. ‘The rupiah remains volatile but closed in the range of Rp 17,790 to Rp 17,850,’ he said. Meanwhile, markets continue to monitor global geopolitical developments, particularly escalating tensions in the Middle East, which are driving demand for safe-haven assets like the US dollar. Assuaibi stated that the combination of export policy sentiment and global geopolitical tensions is expected to weigh on the rupiah’s movements in the short term.