Rupiah Strengthens to Rp 17,476 per US Dollar Amid Global and Geopolitical Pressures
The exchange rate of the rupiah closed stronger at Rp 17,476 per US dollar from the previous Rp 17,529 per US dollar. Muhammad Amru Syifa from the Research and Development of the Indonesia Commodity & Derivatives Exchange (ICDX) assessed that the rupiah’s strengthening was due to profit-taking actions against the US dollar after it had experienced a fairly sharp strengthening previously.
“The rupiah’s strengthening occurred alongside profit-taking on the US dollar after it had a fairly sharp strengthening following the release of US inflation data that exceeded market expectations,” he said in Jakarta on Wednesday (13/5/2026).
It was recorded that the US annual inflation rate reached its highest level in April 2026 since May 2023, at 3.8 per cent, as reported by Anadolu. Market expectations were at 3.7 per cent for April, while the March 2026 figure was at 3.3 per cent.
Investors are also said to be taking a cautious stance while awaiting the release of US producer price index (PPI) data as well as developments from the meeting between US President Donald Trump and Chinese President Xi Jinping, which could influence the direction of global market movements.
“Amid the high geopolitical tensions in the Middle East, some market participants have begun to reposition assets, thus slightly reducing pressure on emerging market currencies,” Amru explained.
From the domestic perspective, the rupiah received support from market optimism regarding Bank Indonesia’s (BI) steps, which are expected to remain active in maintaining exchange rate stability through interventions in the foreign exchange and bond markets.
Furthermore, he continued, there is speculation that BI may adjust interest rates to maintain the attractiveness of domestic assets and to dampen pressures from foreign capital outflows. “Other positive sentiments come from the government’s efforts to strengthen domestic financial market stability, including maintaining liquidity and stabilising the government bond market. Nevertheless, the rupiah’s future movements are still expected to be volatile as the market continues to monitor the direction of The Fed’s policies, foreign capital flows, and developments in global geopolitical risks,” he stated.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) today also moved stronger to Rp 17,496 per US dollar from the previous Rp 17,514 per US dollar.