Rupiah Weakens Amid Very Weak Domestic Sentiment

Jakarta (ANTARA) - The rupiah exchange rate weakened by 25 points or 0.15 percent to Rp17,130 per US dollar on Tuesday morning from the previous close at Rp17,105 per US dollar. Currency analyst at Doo Financial Futures, Lukman Leong, attributed the rupiah’s weakening to ongoing very weak domestic sentiment. “This weakening underscores the still very weak domestic sentiment, including concerns over the budget deficit, downgraded economic growth outlook, continuously declining foreign exchange reserves, and increasingly smaller trade surplus,” he told ANTARA in Jakarta on Tuesday. As of March 2026, the state budget deficit (APBN) was recorded at approximately Rp240.1 trillion, up 140 percent from the same period last year. Regarding Indonesia’s trade balance in February 2026, it achieved a surplus of $1.27 billion, with exports at $22.17 billion and imports at $20.89 billion. The trade surplus slightly increased to $1.27 billion in February 2026 from $0.95 billion, supported by a decline in oil and gas imports. As for the economic growth outlook, the World Bank projects it at 4.7 percent, lower than the previous projection of 4.8 percent. “Investors are placing hopes on the ongoing peace negotiations (US-Iran) that are expected to continue,” Lukman stated. Based on these factors, the rupiah is predicted to range between Rp17,050-Rp17,150 per US dollar.