Rupiah weakens amid Iran's rejection of US peace proposal
Jakarta (ANTARA) - The rupiah exchange rate closed lower today by 32 points or 0.18 per cent to Rp17,414 per US dollar from the previous close at Rp17,382 per US dollar.
Currency and commodity economist Ibrahim Assuaibi views the rupiah’s weakening as influenced by Iran’s rejection of the US peace proposal.
“US President Donald Trump stated that Iran’s response to the US peace proposal is completely unacceptable, thereby increasing geopolitical risks,” he said in a written statement in Jakarta on Monday.
This comment is seen as dampening hopes for a near-term easing of tensions in the Gulf region.
The US proposal demands that Iran halt uranium enrichment activities for 20 years, eliminate its stockpile of highly enriched uranium, and dismantle its main nuclear facilities in exchange for the lifting of sanctions and cessation of military actions.
In contrast, Iran demands the lifting of sanctions, an end to the US naval presence around the Strait of Hormuz, security guarantees, and recognition of Iran’s right to continue some nuclear activities.
The Wall Street Journal reported that Iran has proposed reducing part of its highly enriched uranium and transferring the remainder to a third country.
“Investors remain focused on the Strait of Hormuz, which has largely remained closed since the start of the conflict,” said Ibrahim.
This geopolitical tension is occurring ahead of Trump’s scheduled visit to China this weekend. The US President is expected to meet Chinese President Xi Jinping in Beijing.
The summit is likely to focus on trade, Taiwan, and the Iran conflict, with Beijing viewed as a key diplomatic player due to its relatively good relations with Tehran.
Regarding domestic sentiment, Bank Indonesia’s (BI) Consumer Survey for April 2026 shows that public confidence in the national economy remains in the optimistic zone. This is reflected in the Consumer Confidence Index (IKK) for April 2026 at 123.0, a slight increase from 122.9 in March 2026.
“A level above 100 indicates that consumers still have optimism towards the economic condition,” he explained.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) on Monday also moved lower to Rp17,415 per US dollar from the previous Rp17,375 per US dollar.