Rupiah Strengthens amid Concerns over Erosion of Indonesia's Foreign Exchange Reserves due to Iran-US Conflict
The value of the rupiah against the US dollar is predicted to continue moving fluctuatively, though it closed stronger in today’s trading. Based on Jakarta Interbank Spot Dollar Rate (Jisdor) data from Bank Indonesia, the rupiah exchange rate against the US dollar stood at Rp 16,879 per dollar on Tuesday, 10 March 2026. This position represented a strengthening of 95 points from the previous rate of Rp 16,974 per dollar on Monday, 9 March 2026.
Meanwhile, in spot market trading on Wednesday, 11 March 2026 until 09:12 WIB, the rupiah was transacted at Rp 16,858 per US dollar. This position strengthened by 5 points or 0.03 percent from the previous level of Rp 16,863 per US dollar.
Economic observer and money market analyst Ibrahim Assuaibi stated that Indonesia’s foreign exchange reserves are feared to be increasingly eroded as the rupiah weakens due to global pressures, particularly as a result of the United States-Israel and Iran conflict.
“Indonesia’s foreign exchange reserve position in February 2026 has already become increasingly depleted, leaving just US$151.9 billion. This amount has further diminished from the initial position in January 2026 of US$154.6 billion,” Ibrahim said in his daily research on Wednesday, 11 March 2026.
Bank Indonesia (BI) acknowledged that foreign exchange reserves have contracted due to monetary intervention measures taken when a series of sentiments since the beginning of the year pressured the rupiah. Furthermore, government foreign debt repayments have also reduced the portion of foreign exchange reserves.
However, the central bank assured that the adequacy of foreign exchange reserves is equivalent to financing 6.1 months of imports or 5.9 months of imports and government foreign debt payments. Subsequently, the adequacy level is above international standards of approximately 3 months of imports.
BI assessed that the foreign exchange reserves are capable of supporting external sector resilience as well as maintaining macroeconomic stability and financial system stability. Going forward, the external sector remains well supported by an adequate foreign exchange reserve position, as well as by foreign capital inflows.
This optimism is based on the positive perception of investors regarding the prospects of the national economy and investment returns that remain attractive.
“The rupiah currency is fluctuative yet closed stronger in the range of Rp 16,820-Rp 16,870,” he said.
For information, Russian President Vladimir Putin held a telephone call with Donald Trump and shared a proposal aimed at swift resolution of the Iran conflict, according to a Kremlin aide, easing concerns about prolonged supply disruptions.