Rupiah Weakens to Rp 17,293 Amid Market Concerns Over BI's Narrative on 'Undervalued' Rupiah
The rupiah’s exchange rate against the US dollar is expected to remain volatile but closed weaker in trading today.
According to data from the Jakarta Interbank Spot Dollar Rate (Jisdor) from Bank Indonesia, the rupiah rate against the US dollar stood at Rp 17,245 on Tuesday, 28 April 2026. This position weakened by 18 points from the previous rate of Rp 17,227 in Monday’s trading on 27 April 2026.
Meanwhile, in spot market trading on Wednesday, 29 April 2026, until 09.09 WIB, the rupiah was traded at Rp 17,293 per US dollar. This position weakened by 50 points or 0.29 percent from the previous level of Rp 17,243 per US dollar.
Economic and money market observer Ibrahim Assuaibi stated that whenever the rupiah weakens, the government and Bank Indonesia (BI) always maintain the view that the rupiah is below its fair value or undervalued.
This narrative keeps repeating in various situations, whether during global turbulence, the pandemic, or when market conditions are relatively stable. Even when the exchange rate reaches around Rp 17,300 per US dollar, similar statements emerge again.
Looking back, since 2014, the rupiah has been around Rp 12,000 per US dollar until it weakened to the Rp 17,000 level in recent years. We question the relevance of this narrative given the long-term depreciation trend of the rupiah.
“Such conditions should encourage a deeper evaluation of the understanding of the rupiah’s fair value, rather than repeatedly using the same narrative,” said Ibrahim in his daily research on Wednesday, 29 April 2026.
On one hand, several Indonesian macroeconomic indicators appear relatively strong, such as controlled inflation, stable economic growth, and a well-maintained financial system.
On the other hand, there are structural dynamics that are deemed to require attention, such as foreign exchange reserves partly supported by debt, inflows of foreign investment followed by outflows in the form of dividends and interest, and signs of economic structural weakening such as premature deindustrialisation.
Dependence on short-term foreign capital flows also becomes a factor that makes the exchange rate vulnerable to external pressures.