Rupiah Weakens Further to Rp 18,109 per US Dollar, Legal Scandal Blamed as Negative Sentiment
JAKARTA – The rupiah’s exchange rate against the US dollar continued to weaken beyond the Rp 18,000 level per US dollar. Observers believe one of the negative sentiments affecting the correction of the Garuda currency is the alleged corruption case implicating the former Attorney General for Special Crimes (Jampidsus) at the Attorney General’s Office of the Republic of Indonesia.
Quoting Bloomberg, the rupiah weakened by 44 points, or 0.24 per cent, to Rp 18,109 per US dollar at Monday’s trading close (13/7/2026). In the previous trading session, the rupiah stood at Rp 18,065 per US dollar.
“The market is responding negatively to the alleged mega-corruption case implicating former Jampidsus Febrie Adriansyah, and the conflict between law enforcement agencies has the potential to have serious consequences for the national economy,” currency and commodities observer Ibrahim Assuaibi said in a statement to journalists on Monday (13/7/2026).
Ibrahim said the current legal case could affect the economy. This is because law, as a factor in the business environment, clearly influences economic performance through economic behaviour, economic efficiency, investment and innovation.
In his view, countries with poor legal systems, such as Indonesia, tend to have hindered economic performance and growth. “This is not merely theoretical; it has factually occurred in various countries with weak legal systems. Therefore, the 8 per cent growth target will be very difficult to achieve if the business environment is damaged, as in the legal case happening now,” he said.
He noted that with the law in such a ruined state, there is no longer any legal certainty, and investor confidence automatically falls. This is compounded by policies that are not pro-market, leading to a “vote of no confidence”, which will hamper the economy. In turn, this situation will obstruct the government from achieving greater prosperity for the people.
“Meanwhile, the Febrie case is the peak of legal decay. In a modern democracy, law enforcement should be a pillar of legal certainty and stand at the forefront of the fight against corruption. But in the drama we are witnessing, they have become the main actors, corrupt to the core. President Prabowo Subianto faces a severe test regarding the rule of law and its impact on the economy,” he explained.
External sentiment
Meanwhile, from abroad, Ibrahim said there were several external sentiments influencing the rupiah’s fluctuation today. Chief among them is the impact of the renewed closure of the Strait of Hormuz, in response to an attack carried out by the United States against Iran.
“US and Iranian forces have exchanged heavy missile and drone attacks, with Tehran targeting American facilities in countries across the Gulf on Sunday and saying they have once again closed the vital Strait of Hormuz. This renewed violence raises further doubts about the future of the provisional US-Iran agreement signed last month, which aimed to reopen the strait and end the war after 60 days of further negotiations,” said Ibrahim.