Rupiah Under Pressure as US Dollar Breaches Rp18,070
Jakarta, CNBC Indonesia — The rupiah closed sharply weaker against the US dollar in trading on Thursday (9/7/2026).
According to Refinitiv data, the Garuda currency depreciated 0.44% to settle at Rp18,070 per US dollar. This marks the rupiah’s weakest level in roughly a month, and the first time it has closed above the psychological level of Rp18,000 per US dollar since 9 June 2026.
Throughout the day’s trading, the rupiah remained consistently in the red. It opened 0.33% lower at Rp18,050 per US dollar, and pressure deepened until it briefly touched Rp18,095 — just one step away from breaking through the next psychological level of Rp18,100.
Meanwhile, the US dollar index (DXY), which measures the greenback’s strength against six major world currencies, was down 0.10% at 100.892 as of 15.00 WIB.
US dollar dynamics remain a focus for markets. The greenback has stayed at strong levels recently, supported by rising tensions in the Gulf region, which have boosted demand for safe-haven assets.
Higher energy prices have the potential to put renewed pressure on global inflation and influence expectations about the direction of US central bank interest rates, namely the Federal Reserve (The Fed).
Markets believe a surge in oil prices could accelerate the timing of Fed rate hikes. This has lent support to the US dollar, as markets once again factor in the risk of higher US interest rates.
The rupiah’s continued turbulence against the US dollar is not necessarily a breath of fresh air for foreign investment in the industrial sector.
Rather than rushing to buy land because it has become cheaper in foreign currency terms, overseas investors are instead tending to adopt a hold or wait-and-see stance.
Hendra Hartono, CEO of Leeds Property, said rupiah instability actually damages investors’ long-term calculations, particularly regarding return on investment (ROI).
“When the rupiah is this volatile, foreign investors won’t jump straight in. Even if they see the rupiah is cheap, they’re actually calculating how low can it go. If they buy now and the rupiah keeps weakening, their losses grow. Especially if the property is rented out, the ROI falls apart when converted to dollars,” Hendra told CNBC Indonesia on Thursday (9/7/2026).
According to Hendra, the industrial sector is usually the final stage touched by foreign investors when entering a country. Investors typically go through an adaptation process first before truly injecting large capital into factories or land.
“Foreign investors don’t arrive and immediately look for a factory. They go through a cycle first: staying in hotels, talking to corporate lawyers or local businesspeople about joint ventures. Then they rent a serviced apartment, move into a serviced office for a small team, and only afterwards look for larger premises. Finally, once they are confident in Indonesia’s political and economic stability, only then do they invest in a factory,” he explained.