Rupiah Weakens as Banks Quote US Dollar Above 18,000

The rupiah traded above 17,880 on Friday, 29 May 2026, weakening compared to the previous week. The rupiah has continued to weaken against the US dollar, with several banks quoting rates above 18,000.

According to Bank Indonesia’s transaction data on Friday, BI set the US dollar selling rate at Rp17,877.94. Several international banks set higher rates, such as HSBC Indonesia, which quoted a selling rate of Rp18,060 at 9:01 AM WIB on 29 May.

DBS Indonesia set the rate at Rp18,048 at 10:00 AM WIB on the same day, while UOB Indonesia quoted Rp18,053. Meanwhile, four major Indonesian banks—BCA, Bank Mandiri, BNI, and BRI—quoted selling rates ranging from Rp17,800 to above Rp17,900.

Trimegah Securities Indonesia’s chief economist, Fakhrul Fulvian, noted that the rupiah’s breach of 17,800 per US dollar indicates the market is seeking a new equilibrium amid significant global and domestic pressures.

He stated that BI’s rate hike to 5.25% was appropriate as a signal of stability maintenance, but monetary policy alone cannot suffice; the government must promptly communicate and adjust fiscal measures to prevent further rupiah pressure.

‘If there is no credible follow-up in fiscal policy and government communication, the risk of the rupiah reaching Rp18,000 per US dollar is real,’ he said when contacted on Friday, 29 May 2026.

Fakhrul added that the market is not only watching BI’s interest rates but also whether the government is prepared to adjust and maintain confidence in the state budget (APBN) and balance of payments.

He warned that if the rupiah reaches 18,000 per US dollar, consumers will face higher import prices, inflationary pressures, and reduced purchasing power.

Therefore, the government needs to implement balanced policies between the real and financial sectors. He stressed that safeguarding the rupiah is not just a financial market issue but a cornerstone of national economic stability.