Rupiah Weakens to Rp 17,353 Amid Fitch Rating Concerns Over Danantara and UAE's Exit from OPEC

Jakarta, VIVA – The rupiah’s exchange rate against the US dollar is expected to remain volatile, closing 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 17,324 on Wednesday, 29 April 2026. This position marked a weakening of 79 points from the previous rate of Rp 17,245 on Tuesday, 28 April 2026.

Meanwhile, in spot market trading on Thursday, 30 April 2026, up to 09:00 WIB, the rupiah was traded at Rp 17,353 per US dollar. This position weakened by 27 points or 0.16 percent from the previous level of Rp 17,326 per US dollar.

Economic and money market observer Ibrahim Assuaibi stated that the debt rating agency Fitch Ratings highlighted several investor concerns regarding Danantara, which was a key point in Fitch’s considerations when it downgraded Indonesia’s debt outlook from stable to negative in March 2026.

Several potential issues that have arisen relate to governance and a tendency towards concentrated reporting, as Danantara reports directly to the president. Additionally, there are concerns that Danantara could be used to finance government programmes.

For example, when there is a gap between the budget and government spending needs, Danantara could be used to cover some of those needs. In its assessment, Fitch examined the clarity of Danantara’s position as a sovereign wealth fund.

If an entity claims to be entirely commercial but in reality it is not, expectations could be off the mark. This could lead to surprises, as investment decisions could be influenced by political aspects rather than purely returns.

“The rupiah is volatile but closed weaker in the range of Rp 17,320-Rp 17,380,” he said.

For information, the market is considering the impact of the United Arab Emirates’ (UAE) decision to leave the OPEC producers’ group. The UAE’s exit, effective this Friday, is a major blow to the oil producers’ group amid ongoing disruptions due to the Iran war. The UAE stated that the move aims to focus more on its “national interests.”

Additionally, the US will extend the blockade of Iranian ports, which could prolong supply disruptions from the major oil-producing region in the Middle East. US President Donald Trump has instructed his aides to prepare for the extension of the Iranian blockade.