Rupiah Weakens as US Dollar Surges Past Rp 18,180
The weakening of the Rupiah against the US Dollar continues, with the greenback now nearing the Rp 18,200 mark. According to Refinitiv data, at the close of trading on Monday (8/6/2026), the Rupiah depreciated by 0.89%, with the exchange rate reaching Rp 18,180, marking a new record low for the Indonesian currency.
In the global market, the US Dollar Index (DXY) was observed to weaken slightly this morning, falling 0.07% to 99.998 as of 09:00 WIB. However, this position remains high after the DXY surged 0.66% in the final trading session of last week, breaking back above the 100 level. The sustained strength of the US Dollar index has limited the recovery potential for Asian currencies, including the Rupiah.
The US Dollar previously strengthened following the release of US labour market data for May, which exceeded expectations. This data has bolstered speculation that the next move from the US Federal Reserve could involve an interest rate hike. Additionally, the US Dollar continues to benefit from demand for safe-haven assets, driven by the lack of progress in peace talks between the United States and Iran.
Furthermore, the ongoing conflict between Israel and Hezbollah militants in Lebanon continues to impact markets. Iran is reportedly demanding a ceasefire in Lebanon before accepting a US-brokered deal to extend a ceasefire and reopen the Strait of Hormuz.
Domestically, Bank Indonesia previously reported that Indonesia’s foreign exchange reserves fell by US$ 1.3 billion to US$ 144.9 billion in May 2026. This decline was attributed to the government’s foreign debt payments and exchange rate stabilisation policies in response to high global financial market uncertainty and seasonal domestic demand for foreign currency. Despite the drop, the foreign exchange reserves at the end of May 2026 remain robust, equivalent to 5.6 months of imports, well above the international adequacy standard of approximately 3 months.
Market attention is also focused on the recent meeting between the House of Representatives (DPR), Bank Indonesia (BI), and the government held at the Nusantara III Building, Parliament Complex, Senayan, on Saturday (6/6/2026). The consolidation, initiated by the Deputy Speaker of the DPR from the Gerindra Party, Sufmi Dasco Ahmad, aims to demonstrate closer fiscal and monetary synergy amidst the pressure on the Rupiah.
“Today, the DPR has intentionally gathered with colleagues from monetary and fiscal authorities, as well as the government, to conduct an evaluation of economic developments,” Dasco stated during a press conference.
Josua Pardede, Chief Economist at Bank Permata, believes the meeting could provide positive sentiment for the Rupah’s movement, although its impact may be more about resisting pressure rather than a strong reversal. “In my view, the meeting between the Finance Minister and the Governor of Bank Indonesia at the DPR could positively influence the Rupiah’s movement on Monday, 8 June 2026, but the influence is likely more about containing pressure rather than an immediate strong reversal,” Pardede told CNBC Indonesia.
According to Pardede, the commitment to strengthening coordination, maintaining the attractiveness of Rupiah asset yields, and ensuring liquidity availability could help alleviate short-term concerns. “However, the strengthening of the Rupiah remains highly dependent on whether these commitments are followed by concrete actions, rather than just joint statements,” he emphasised.