Rupiah strengthens on back of non-subsidised fuel price hike

The rupiah exchange rate strengthened on Wednesday morning, moving up 158 points or 0.88 per cent to Rp17,900 per US dollar compared to the previous close of Rp18,058 per US dollar.

Analyst Rully Nova of Bank Woori Saudara assessed that the rupiah’s appreciation was influenced by the rise in non-subsidised fuel prices, which is having a positive impact on the government’s fiscal position. “The market views the transmission of the non-subsidised fuel price hike policy as beneficial for the government’s fiscal position, with socio-political risks still under control,” he said in Jakarta on Wednesday.

Pertamina Patra Niaga announced an increase in the prices of Pertamax and Pertamax Green fuel products effective 10 June 2026. The non-subsidised fuel Pertamax (RON 92) rose from Rp12,300 to Rp16,250 per litre, while Pertamax Green 95 (RON 95) increased from Rp12,900 to Rp17,000 per litre. The company stated the price adjustments for Pertamax and Pertamax Green were decided in coordination with the government as regulator and carried out in accordance with the periodic evaluation mechanism, taking into account developments in global oil prices and prevailing economic market prices. The prices of non-subsidised fuel products Pertamax Turbo (RON 98) remained at Rp20,750 per litre, Dexlite (CN 51) at Rp23,000 per litre, and Pertamina Dex (CN 53) at Rp24,800 per litre. The subsidised fuels Pertalite and Biosolar also remained priced at Rp10,000 per litre and Rp6,800 per litre respectively.

Another supporting sentiment came from Bank Indonesia’s decision to raise the benchmark interest rate by 25 basis points to 5.5 per cent, reflected in the strengthening stock index and sustained foreign investor interest in bond auctions. “Global factors will make it harder for the rupiah to strengthen further, including geopolitical risks from the latest escalation of the US-Iran conflict keeping oil prices high and market participants still awaiting US inflation data tonight, which is expected to be on an upward trend,” Rully added.

Based on these factors, the rupiah is predicted to trade in the range of Rp18,030 to Rp18,080 per US dollar.