Rupiah Strengthens Following Signing of Indonesia-US Trade Tariff Agreement

Jakarta — The Indonesian rupiah strengthened against the US dollar following the signing of a landmark trade agreement between Indonesia and the United States.

According to Jakarta Interbank Spot Dollar Rate (JISDOR) data from Bank Indonesia, the rupiah stood at Rp16,885 per dollar on Friday, 20 February 2026, gaining 40 points from the previous day’s level of Rp16,925 on Thursday, 19 February 2026.

Meanwhile, in spot market trading on Monday, 23 February 2026, as of 09:06 Western Indonesian Time, the rupiah was transacted at Rp16,849 per dollar, strengthening by 39 points or 0.23 per cent from the previous position of Rp16,888 per dollar.

Economic and money market analyst Ibrahim Assuaibi said the Indonesian and US governments officially agreed on a reciprocal trade agreement document entitled “Implementation of the Agreement toward New Golden Age US-Indonesia Alliance” on Friday. The agreement was signed directly by President Prabowo Subianto and US President Donald Trump.

The agreement contains a number of bilateral cooperation commitments covering 11 memoranda of understanding (MoUs), the establishment of a permanent economic council, tariff reductions on thousands of product lines, and commitments to energy and aircraft purchases.

The signing of the main document took place in Washington DC, marking a new chapter in the economic relationship between the two nations, which has long been underpinned by trade, investment, and strategic Indo-Pacific cooperation.

The agreement is expected to serve as a historic milestone in the Indonesia-US partnership, strengthening economic security, driving economic growth, and making a sustained contribution to global prosperity.

Prabowo and Trump instructed their respective ministers to promptly translate the agreement into technical policies and supporting regulations to ensure its implementation has a tangible impact on the economy.

“The rupiah will fluctuate but is expected to close weaker in the range of Rp16,880 to Rp16,910,” Assuaibi said.

The minutes of the Federal Open Market Committee (FOMC) meeting in January, published last Wednesday, struck a cautious but hawkish tone, reinforcing the view that near-term interest rate cuts are unlikely. This has kept the US dollar and government bond yields stable, placing pressure on non-yielding precious metals.