Rupiah Strengthens Amid Global Bond Interest and US Tariff Sentiment
The Rupiah exchange rate closed at 16,759 per US dollar in Jakarta on Thursday, strengthening by 41 points or 0.24 percent from 16,800 per US dollar. This strengthening was driven by a combination of solid domestic factors and global trade policy dynamics.
Woori Saudara Bank analyst, Rully Nova, stated that the Rupiah’s strengthening was greatly influenced by continued high market interest in Indonesian government bonds.
“Market interest in government bonds remains high because they still offer competitive yields while fiscal management will continue to be well-managed,” said Rully in Jakarta.
One strong indicator is the report on the Indonesian government’s global euro bond, which was oversubscribed by 3.4 times. Demand reached 9.2 billion euros from a total offering of 2.7 billion euros. This condition shows that the government’s funding sources for expanding fiscal space are still very adequate at a relatively low cost.
Globally, the Rupiah’s strengthening was also triggered by market response to US President Donald Trump’s speech on tariff policy. Currently, the United States is implementing a temporary global tariff of 10 percent, with plans to increase it to 15 percent following a decision by the US Supreme Court to overturn a previous reciprocal tariff measure.
In his speech before the US Congress, Trump mentioned that many countries and companies want to maintain the old tariff agreement. However, this protectionist policy is predicted to reduce reliance on the US dollar in the short term.
“The tariff war is expected to reduce trade volume with the US, so the need for dollars, both for exports and imports and for foreign exchange reserves, will decrease,” said Rully.
In line with the strengthening in the spot market, the Bank Indonesia Jakarta Interbank Spot Dollar Rate (JISDOR) also closed stronger at IDR 16,758 per US dollar, strengthening from the previous position of IDR 16,813 per US dollar. (Ant/I-2)
The Rupiah exchange rate weakened to 16,829 per US dollar on February 24, 2026. See the analysis of the causes of external pressure and the Fed’s interest rate projection here.
The Rupiah exchange rate weakened by 10 points to IDR 16,835 per US dollar on Tuesday morning (February 24, 2026). See the analysis of the causes of the Rupiah’s weakening today.
The Rupiah exchange rate strengthened to 16,885 (JISDOR) after the New Golden Age RI-US trade agreement was signed by Prabowo and Trump. See the complete analysis here.
The price of gold today, February 19, 2026, moved slightly higher amid global sentiment. See the analysis and price predictions for gold for Friday, February 20, 2026.
Bank Indonesia (BI) believes that the current Rupiah exchange rate is undervalued. BI Governor Perry Warjiyo is preparing a market intervention strategy for the NDF & Spot to stabilize the Rupiah.
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