Rupiah Weakens After S&P Issues Negative Outlook on Indonesian Bonds

The rupiah exchange rate closed weaker on Friday’s trading, declining by 50 points or 0.29% to Rp17,189 per US dollar from the previous close of Rp17,139 per US dollar.

Analyst from Bank Woori Saudara, Rully Nova, stated that the rupiah’s weakening was influenced by the negative outlook from rating agency Standard & Poor’s Global Ratings (S&P) on the bond rating.

“Today’s rupiah trading was more influenced by domestic pressures related to the negative outlook from S&P rating agency on the government’s bond rating due to significant government fiscal pressures,” Rully Nova told Antara in Jakarta on Friday, 17 April 2026.

“From the external side, it actually provided positive sentiment, as seen from the majority of regional currencies strengthening and the dollar index remaining relatively stable,” Rully added.

The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia also moved weaker today to Rp17,189 per US dollar from the previous Rp17,142 per US dollar.

Previously, it was reported that rating agency S&P Global Ratings expressed concerns over Indonesia’s debt repayment ratio.

Finance Minister Purbaya Yudhi Sadewa conveyed that S&P had inquired in detail about Indonesia’s fiscal condition, including the consistency in keeping the deficit below the 3% threshold against Gross Domestic Product (GDP).

Purbaya stated that there is a possibility the 2025 State Budget (APBN) deficit in the Central Government Financial Report (LKPP) will decrease from the initial projection after being audited by the Supreme Audit Agency (BPK).

The Ministry of Finance recorded the interim realisation of the 2025 APBN deficit at 2.92% of GDP. For the final audit results, Purbaya projected the deficit to narrow to 2.8% of GDP.

For the 2026 State Budget, Finance Minister Purbaya mentioned efforts by the Ministry of Finance to improve tax collection as well as customs and excise, one of which is through organisational restructuring.