Rupiah strengthens as government raises prices of non-subsidised fuels
Jakarta (ANTARA) - The rupiah exchange rate strengthened by 34 points or 0.20% to Rp17,155 per US dollar on Monday morning from the previous close at Rp17,189 per US dollar.
Doo Financial Futures currency analyst Lukman Leong stated that the rupiah’s strengthening was influenced by the government’s move to raise the prices of non-subsidised fuels (BBM).
“The rupiah has the potential to strengthen against the US dollar following the government’s step to increase non-subsidised fuel prices, which is seen as capable of reducing the burden on the state budget (APBN),” he told ANTARA in Jakarta on Monday.
PT Pertamina (Persero) recently raised prices for several non-subsidised fuel products, namely Pertamax Turbo, Dexlite, and Pertamina Dex, starting from Saturday (18/4).
The price of Pertamax Turbo in the DKI Jakarta area as of 18 April rose by Rp19,400 per litre from the price on 1 April 2026 of Rp13,100 per litre. For Dexlite, the price was set at Rp23,600 per litre, up from Rp14,200 per litre on 1 April 2026. Meanwhile, for Pertamina Dex, the price was set at Rp23,900 per litre from the previous Rp14,500 per litre.
Prices for these fuels also underwent adjustments in several other provinces.
On its official website, Pertamina stated that the adjustment of general fuel (BBM) prices was carried out in accordance with the base price formula in the calculation of the retail selling price for general petrol and diesel fuel types distributed through public fuelling stations.
This formula is in line with Ministerial Decree (Kepmen) ESDM No. 245.K/MG.01/MEM.M/2022 as an amendment to Kepmen No. 62 K/12/MEM/2020.
On the other hand, uncertainties surrounding the status of the Strait of Hormuz are providing negative sentiment towards the rupiah.
As reported by Anadolu, Iran’s Islamic Revolutionary Guard Corps (IRGC) stated that the Strait of Hormuz has returned to its “previous condition” under the control of the “armed forces”, referring to the ongoing US blockade of Iranian ports.
The IRGC emphasised that until the US “fully restores freedom of movement for ships entering and exiting Iran”, the situation in the Strait of Hormuz will remain under strict supervision and unchanged.
“Investors are also still inclined to wait and see the outcome of US-Iran negotiations on Monday and Bank Indonesia’s Board of Governors Meeting (RDG BI) on Wednesday (22/2). However, the US-Iran negotiations are not yet confirmed to take place and remain unclear,” Lukman revealed.
The US and Iranian teams are likely to hold the second round of talks involving their respective technical teams in Pakistan’s capital in the near future, at the earliest today. The technical teams from both sides are expected to meet in Islamabad for the next round to finalise an agreement on the conflict that has lasted several weeks between the US and Iran, impacting global energy supplies and daily life in the Middle East region.
Regarding the RDG BI, he continued, it is expected to maintain interest rates and provide the same rhetoric as before. “However, considering the recent weakening of the rupiah, I see potential for an interest rate hike,” he said.