Rupiah weakens as oil prices surge sharply

Jakarta (ANTARA) - The Indonesian rupiah weakened by 7 points, or 0.04 percent, to Rp16,893 per US dollar at the close of trading in Jakarta on Thursday morning, compared with the previous close of Rp16,886 per US dollar.

Money market analyst Ibrahim Assuaibi attributed the rupiah depreciation to a sharp spike in oil prices, which briefly surged above $100 per barrel.

“Media reports indicate that two international oil tankers have been struck near Iraq. Other reports show that Oman has evacuated its main oil export terminal, whilst Iran appears to be blockading the Strait of Hormuz—a key supply route for approximately one-fifth of global oil,” he stated in a written statement in Jakarta on Thursday.

Higher oil prices have made markets wary of increased long-term inflation, which has triggered concerns about more aggressive central bank policies in the coming months.

Another factor stemming from the February 2026 US Consumer Price Index (CPI) release, which rose 0.3 percent month-on-month, up from the previous 0.2 percent month-on-month and in line with market expectations of 0.3 percent month-on-month.

“The February CPI figure, which matched expectations, provides limited guidance, as the PCE (Personal Consumption Expenditures) inflation data is still awaited. Although the figure aligns with expectations, it does little to ease concerns about rising price pressures ahead, driven by the energy sector,” said Ibrahim.

Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened to Rp16,899 per US dollar from the previous level of Rp16,867 per US dollar.