Rupiah Weakens Amid US Efforts to Blockade Strait of Hormuz

Influenced by US blockade efforts following the failure of peace negotiations between the US and Iran last weekend

Jakarta (ANTARA) - The rupiah exchange rate closed down 1 point or 0.01 percent at Rp17,105 per US dollar from the previous close at Rp17,104 per US dollar.

Currency and commodity analyst Ibrahim Assuaibi assessed that the rupiah’s weakening was influenced by US efforts to blockade the Strait of Hormuz.

“Influenced by US blockade efforts following the failure of peace negotiations between the US and Iran last weekend,” he stated in a written release in Jakarta on Monday.

US President Donald Trump stated that the US Navy would begin blockading the Strait of Hormuz, endangering the two-week ceasefire between the US and Iran.

The US Central Command stated that US forces would begin implementing a blockade on all maritime traffic entering and exiting Iranian ports starting at 10 a.m. ET on Monday.

The blockade is being imposed impartially on ships from all countries entering or leaving Iranian ports and coastal areas, including all Iranian ports in the Arabian Gulf and Gulf of Oman.

In response, Iran’s Revolutionary Guard stated that any military vessel attempting to approach the Strait of Hormuz would be considered a violation of the ceasefire and would be dealt with firmly and decisively.

On the other hand, the Asian Development Bank (ADB) projects Indonesia’s economic growth to reach 5.2 percent in 2026, higher than last year’s realisation of 5.1 percent, but lower than the government’s target of 5.4 percent.

“That projection is still within Bank Indonesia’s (BI) inflation target range of 2.5±1 percent,” Ibrahim revealed.

The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia today also moved lower to Rp17,122 per US dollar from the previous Rp17,112 per US dollar.