Rupiah Strengthens to 17,168 per US Dollar

The rupiah exchange rate closed at Rp 17,168 per US dollar on trading Monday, 20 April 2026. That position strengthened by 20 points compared to the previous close at Rp 17,188 per US dollar at the end of last week.

Director of PT Traze Andalan Futures, Ibrahim Assuaibi, said one external factor influencing the exchange rate development was the re-closure of the Strait of Hormuz after the US and Iran accused each other of violating the ceasefire. “Oil prices surged up to 7 percent on Monday, making the market largely tense due to the inflationary effects from the Iran war,” he said in a written statement on Monday, 20 April 2026.

In addition, Ibrahim said, this new tension has significantly shifted expectations for a US interest rate cut this year towards maintaining high interest rates for a longer period. That shift in stance is driven by inflation that remains high due to elevated energy prices and geopolitical instability in the Middle East.

Meanwhile, on the internal side, the International Monetary Fund or IMF has warned the government not to spend excessively amid uncertainty due to the conflict in the Middle East. Ibrahim stated that this warning emerges in line with the risk of recession if the war continues to rage in Iran and pressures oil fuel prices.

Ibrahim assessed that with increasing public debt, fiscal space is becoming increasingly narrow. “Price limits, subsidies, and interventions are becoming popular policies, but they distort prices and are often poorly designed because they cause dependency and are expensive,” he said.