Rupiah strengthens influenced by Indonesia's economic resilience
Jakarta (ANTARA) - The rupiah exchange rate closed stronger on Tuesday’s trading by 25 points or 0.15 percent to Rp17,143 per US dollar from the previous close at Rp17,168 per US dollar.
Currency and commodity economic observer Ibrahim Assuaibi assessed that the rupiah’s strengthening was influenced by Indonesia’s economic resilience amid geopolitical pressures.
“The government is striving to increase investment by ensuring national economic growth meets targets and aligning fiscal policies with their realisation to create sustainable economic improvements,” he stated in a written remark in Jakarta on Tuesday.
Currently, Indonesia is shifting its development focus to maintain stability and more productive growth, value-added, and quality job creation.
This transformation is driven by three main pillars: investment, industrialisation, and productivity.
According to him, Indonesia’s economic performance is relatively strong compared to other G20 countries and other developing nations, supported by solid growth, low inflation, and managed deficits and debt ratios.
This resilience stems from the role of the state revenue and expenditure budget (APBN) as a shock absorber in protecting people’s purchasing power, while maintaining fiscal discipline below the 3 percent deficit limit of gross domestic product (GDP).
“Indonesia will optimise the synergy of fiscal and monetary policies, as well as leverage the role of Danantara in mobilising investments outside the APBN,” he said.
Amid global price adjustments, the yield on 10-year government bonds has also relatively increased but remains within government assumptions.
This credibility enables Indonesia to absorb higher energy prices without sacrificing support for vulnerable groups or breaching the fiscal deficit limit.
“Although Indonesia recorded an outflow of foreign exchange amounting to 1.8 billion US dollars and rupiah depreciation, the fiscal deficit remains below 3 percent and foreign reserves are still adequate, proving that macroeconomic financial credibility functions at the most critical times, including in strengthening energy resilience,” Ibrahim explained.
The current geopolitical situation involves uncertainty over the future of the US-Iran peace agreement.
On one hand, the US President confirmed that a delegation led by Vice President JD Vance will travel to Pakistan for further talks this week.
On the other hand, Iranian officials stated that talks seem unlikely as long as the US maintains its naval blockade against the country.
However, reports indicate that Tehran has confirmed to regional mediators that they are sending a delegation to Islamabad, Pakistan.
“The fragile ceasefire between the US and Iran will end on Wednesday (22/4/2026), with Trump signalling that extending the agreement seems unlikely. Markets are also tense due to further military actions in the Middle East after the US shot at and captured an Iranian-flagged vessel over the weekend,” said Ibrahim.
The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia today also moved stronger to Rp17,142 per US dollar from the previous Rp17,176 per US dollar.