Rupiah Strengthens Despite World Bank Cutting Indonesia's 2026 Economic Growth Projection

Jakarta, VIVA – The rupiah exchange rate against the US dollar is predicted to remain volatile but closed weaker in trading today.

Based on data from the Jakarta Interbank Spot Dollar Rate (Jisdor) of Bank Indonesia, the rupiah rate against the US dollar stood at Rp17,082 on Thursday, 9 April 2026. This position represented a weakening of 73 points from the previous rate of Rp17,009 on Wednesday’s trading, 8 April 2026.

Meanwhile, in spot market trading on Friday, 10 April 2026, up to 09:02 WIB, the rupiah was transacted at Rp17,083 per US dollar. This position strengthened by 7 points or 0.04 percent from the previous level of Rp17,090 per US dollar.

Economic and money market observer Ibrahim Assuaibi stated that the World Bank projects Indonesia’s economic growth in 2026 at 4.7 percent, down from the previous estimate of 4.8 percent. Despite the downward revision, this figure is still higher than the growth projection for the East Asia and Pacific (EAP) region, which stands at only 4.2 percent.

The economic outlook for the region is influenced by three main external factors: conflicts in the Middle East triggering rises in energy prices, US trade restrictions and global policy uncertainties, and rapid developments in artificial intelligence (AI) technology.

Previously, the OECD cut its projection for Indonesia’s economic growth in 2026 to 4.8 percent from the previous 5 percent. This revision comes amid increasing global pressures, particularly due to surges in energy prices and geopolitical tensions.

The pessimism from the World Bank and OECD contrasts with the government’s optimism, which projects strong growth for the 2026 economy in the range of 5.4–5.7 percent, driven by domestic consumption, investment, and the B50 biodiesel programme, with hopes of reaching 6 percent through structural transformation.

The focus is on food and energy sovereignty, prudent fiscal policies, and accelerating investments to maintain stability amid global uncertainties.

“The rupiah is volatile but closed weaker in the range of Rp17,090–Rp17,140,” he said.

For information, disruptions in the Strait of Hormuz continue, and renewed geopolitical tensions in the Middle East are clouding supply prospects. As a vital route carrying about one-fifth of global oil supplies, it remains largely blocked, despite a temporary ceasefire between the United States and Iran.