Rupiah weakens amid uncertainty over Iran-US-Israel conflict

Jakarta – The rupiah weakened by 30 points or 0.18 per cent to Rp16,923 per US dollar at the opening of trading in Jakarta on Friday morning, compared with the previous closing of Rp16,893 per dollar.

Rully Nova, an analyst at Bank Woori Saudara, said the rupiah weakness was influenced by uncertainty over the end of the Iran conflict with the US and Israel.

“The rupiah weakness is influenced by global rising uncertainty over the end of the Iran conflict with the US and Israel, which has caused market participants to avoid risky assets (risk off) such as the rupiah, causing the dollar index to increase,” he told ANTARA in Jakarta on Friday.

Citing Sputnik, Iran’s Supreme National Security Council secretary Ari Larijani said on Thursday that the Islamic Republic would make US President Donald Trump pay for aggression against Iran.

He alluded to US President Donald Trump by stating that war cannot be won with just a few tweets, and assured that Iran would make the decision to attack Iran a serious miscalculation.

Trump said on Wednesday that Iran was “almost at the end of the road.” He also threatened to destroy Iran’s electrical capacity within one hour, but hoped that such action would not be necessary.

Finance Minister Purbaya Yudhi Sadewa revealed that the 2026 State Budget had recorded a deficit of 0.53 per cent of Gross Domestic Product (GDP) or worth Rp135.7 trillion by the end of February 2026.

The 2026 budget is projected to experience a deficit of Rp698.15 trillion, or equivalent to 2.68 per cent of GDP.