Rupiah Weakens as US Tariff Threat Intensifies, Indonesian Exports at Risk

The rupiah exchange rate closed in the red again on Tuesday, 16 June 2026. The weakening of the Indonesian currency occurred amid mounting market concerns over the United States’ plan to impose additional import tariffs on a number of Indonesian products.

Market participants assess that the policy has the potential to trigger new pressure on national export performance, especially the manufacturing sector, which has been one of Indonesia’s largest foreign exchange contributors. These concerns also influenced investor sentiment and were reflected in the rupiah’s exchange rate movement throughout the day’s trading.

Money Market and Commodities Observer Ibrahim Assuaibi said the rupiah ended trading weaker compared to the previous closing position. According to him, external pressure remains the dominant factor affecting the domestic currency’s movement.

“In this afternoon’s trading, the rupiah closed down 19 points, having previously strengthened by 5 points at a level of Rp17,725 from the previous close of Rp17,708,” Ibrahim said on Tuesday. Nevertheless, he estimates that the rupiah’s movement in the next trading session still has a limited chance to strengthen. According to his projection, the rupiah will move in a fluctuating range between Rp17,690 and Rp17,728 per US dollar.

The market’s main focus is currently on the US government’s plan to impose additional tariffs on several Indonesian products. The policy is considered likely to tighten access for national products to one of the world’s largest export markets. Ibrahim stated that the threat of new tariffs is a significant negative sentiment for both Indonesia’s financial markets and the real sector.

“The trade war is rumbling again, after the United States’ plan to slap new import tariffs on a number of Indonesian products has the potential to suppress the export performance of national manufactured products,” he said. According to him, the policy not only impacts international trade but could also affect domestic economic activity more broadly. The manufacturing sector is one of the areas most likely to be affected if the additional tariff policy is truly implemented.