Rupiah strengthens on above-expectation economic growth data

The rupiah exchange rate against the US dollar at the close of trading on Wednesday strengthened by 94 points, or 0.52 per cent, to Rp17,933 per US dollar, compared to the previous close of Rp18,027 per US dollar.

Analyst Rully Nova from Bank Woori Saudara stated that the rupiah’s strengthening was influenced by second-quarter 2026 economic growth data that came in higher than expected.

‘Today, the rupiah strengthened, influenced more by domestic factors related to second-quarter economic growth data that was higher than market players’ expectations,’ he said in Jakarta on Wednesday.

Statistics Indonesia (BPS) recorded that the Indonesian economy grew by 5.29 per cent year-on-year in the second quarter of 2026, with GDP at constant prices reaching Rp3,576.2 trillion, up from Rp3,396.6 trillion in the same period the previous year. Based on GDP at current prices, the economy in the second quarter of 2026 amounted to Rp6,552.1 trillion. Market players had previously expected economic growth of only 5.1 per cent.

Looking at global sentiment, the trend of falling oil prices is said to influence short-term inflation, which impacts the Federal Reserve’s interest rate, now expected not to be raised in the near term.

‘Oil prices fell to below 80 US dollars per barrel due to the prospect of a temporary agreement between Iran and the US focusing on the reopening of the Strait of Hormuz,’ said Rully.

Citing Anadolu, US President Donald Trump stated the Strait of Hormuz would be reopened ‘in the very near future’ as negotiations with Iran continue. Trump also warned Tehran would face severe military action if an agreement is not reached. However, the claim was denied by Iranian officials, who also dismissed reports that a deal to reopen the Strait of Hormuz had been reached.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate also strengthened today, moving to Rp17,937 per US dollar from the previous Rp18,037 per US dollar.