Rupiah Weakens Amid Uncertainty Over US-Iran Ceasefire
Jakarta (ANTARA) - The rupiah exchange rate closed lower on Wednesday’s trading by 38 points or 0.22 percent to Rp17,181 per US dollar from the previous close at Rp17,143 per US dollar.
Currency and commodity economist observer Ibrahim Assuaibi assessed this weakening as due to uncertainty over the ceasefire between the US and Iran.
“US President Donald Trump stated he would extend the ceasefire with Iran indefinitely to allow talks to continue aimed at ending the war that has killed thousands and shaken the global economy,” he said in an official statement in Jakarta on Wednesday.
Trump’s move is seen as unilateral, and it remains unclear whether Iran or Zionist Israel will agree to extend the ceasefire for the two weeks as previously agreed.
On the other hand, Trump stated that the US Navy would maintain the blockade of Iranian ports and coastlines, which Iranian leaders have described as an act of war.
“There has been no direct comment from senior Iranian leaders regarding Trump’s ceasefire extension. The Tasnim News Agency stated that Iran did not request the extension and reiterated its position to break the US blockade by force,” Ibrahim revealed.
Looking at domestic sentiment, the Indonesian government is said to face significant liquidity pressures in 2026 as debt maturities reach Rp833.96 trillion, the highest level in the past decade.
This surge in obligations marks a crucial phase in fiscal management, amid rising financing needs and global financial market uncertainties.
This pressure stems from the accumulation of debt issuances in previous years, including the burden-sharing scheme between the government and Bank Indonesia during the COVID-19 pandemic. Of the total 2026 maturities, around Rp154.5 trillion comes from instruments resulting from that cooperation.
“The large volume of debt that must be repaid forces the government to undertake large-scale refinancing strategies. However, this step is not without risks,” he said.
The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia today also moved lower to Rp17,179 per US dollar from the previous Rp17,142 per US dollar.