Rupiah Weakens Further as Analysts Monitor Export Agency and Fed Sentiment

The rupiah continued to weaken against the US dollar, breaking past Rp17,700 on Monday (25 May 2026). The depreciation persists following the government’s announcement of the new export agency, PT Danantara Sumberdaya Indonesia (DSI). According to Bloomberg, the rupiah closed down 27 points or 0.15% at Rp17,744 per US dollar on Monday (25 May 2026). On the previous trading day, the currency had been at Rp17,717 per dollar. Ibrahim, in a statement to journalists on Monday, cited the President’s remarks on export issues through a single channel via Danantara as an internal factor behind the rupiah’s weakness. According to Ibrahim, the government’s decision to establish a single export agency could lead to Indonesia’s debt rating being downgraded by international agencies. “This has drawn widespread criticism. International firms such as S&P Global are likely to lower the Indonesian government’s credit rating,” he added. The government officially announced the formation of PT DSI on Wednesday (20 May 2026). DSI operates under state-owned enterprises (BUMN) and will commence operations on 1 June 2026. Its primary purpose is to strengthen oversight and monitoring, and combat practices such as under-invoicing, transfer pricing manipulation, and foreign exchange outflows from exports. Ibrahim continued that another internal factor pressuring the rupiah is the budget deficit. “The budget deficit has become a market concern. Despite falling oil prices, positive sentiment towards the rupiah has not improved. Neighbouring countries’ currencies have strengthened, but Indonesia’s has weakened,” he explained. A third internal factor is policies perceived as unfriendly to the market, likely causing further rupiah depreciation. “The weakening is expected to continue tomorrow (Tuesday, 26 May 2026) by approximately 50-60 points,” he concluded.