Rupiah weakens as foreign capital outflows continue

Jakarta (ANTARA) - The rupiah exchange rate moved weaker by 37 points or 0.21 per cent to Rp17,944 per US dollar on Wednesday morning, compared to the previous close of Rp17,907 per US dollar.

Permata Bank Chief Economist Josua Pardede stated that the rupiah’s weakness was influenced by the continued outflow of foreign funds in the stock market.

“Foreign investors recorded a net sell of 58.20 million US dollars, which pushed the Jakarta Composite Index (IHSG) down by 3.05 per cent to the level of 5,643,” he told ANTARA in Jakarta on Wednesday.

Today, the rupiah is expected to trade within the range of Rp17,825-Rp17,950 per US dollar.

Statistics Indonesia (BPS) is set to release June 2026 inflation data and May 2026 trade balance figures. The agency expects the Consumer Price Index (CPI) inflation to increase to 0.50 per cent month-on-month (mom) or 3.41 per cent year-on-year (yoy) in June 2026, up from 0.28 per cent mom or 3.08 per cent yoy in May 2026. This is driven by the strengthening pass-through of rising input costs to consumer prices, including increases in non-subsidised energy prices and transport costs.

Meanwhile, Indonesia’s trade balance surplus is projected to widen to 1.13 billion US dollars in May 2026 from 0.09 billion US dollars in April 2026, supported by the normalisation of import activities following the post-Eid surge. However, the trend over the past year still shows a gradual narrowing of the trade surplus.

Reviewing global sentiment, uncertainty remains high regarding the potential for a peace agreement in the Middle East. Investors are awaiting further developments from the peace negotiations between the US and Iran in Doha, Qatar, which aim to ease tensions in the Strait of Hormuz.