Rupiah Weakens to Rp 17,414 per US Dollar, Here's the Culprit
JAKARTA, KOMPAS.com - The rupiah exchange rate in the spot market closed under pressure on Monday (11/5/2026). The Garuda currency depreciated by 32 points or 0.18 percent to Rp 17,414 per US dollar.
In line with this, the Jisdor rupiah rate weakened by Rp 40 or 0.23 percent to Rp 17,415 per US dollar.
Currency and Commodities Analyst Ibrahim Assuaibi stated that the rupiah’s weakening was driven by geopolitical tensions in the Middle East. In particular, US President Donald Trump’s statement describing Iran’s response to the US peace proposal as “completely unacceptable” has once again increased global geopolitical risks.
On Sunday (10/5/2026), Trump rejected Tehran’s latest counter-proposal to the peace framework submitted by Washington. The statement also dampened market hopes for a potential easing of tensions in the Gulf region in the near term.
The initial US proposal reportedly demands that Iran halt uranium enrichment activities for 20 years, eliminate its stockpile of highly enriched uranium, and dismantle its main nuclear facilities. In return, the US offers the lifting of sanctions and the cessation of military actions.
“The original US proposal reportedly demands the cessation of Iran’s uranium enrichment activities for 20 years, the elimination of its stockpile of highly enriched uranium, and the dismantling of its main nuclear facilities in exchange for the lifting of sanctions and the cessation of military actions,” said Ibrahim to reporters on Monday afternoon.
The Wall Street Journal reported that Iran also proposed reducing part of its highly enriched uranium stockpile and transferring the remainder to a third country.
According to Ibrahim, global investors are still paying close attention to the situation in the Strait of Hormuz, which remains largely closed since the conflict intensified.
These geopolitical tensions are occurring ahead of Trump’s scheduled visit to China this weekend. During the visit, Trump is expected to meet Chinese President Xi Jinping in Beijing.
The meeting between the two leaders is projected to discuss several strategic issues, from trade and Taiwan to the Iran conflict. China is considered to have an important diplomatic position on the issue given Beijing’s economic ties with Tehran.
In addition, US retail sales data and speeches by several Federal Reserve officials will also be in focus for investors to gauge the direction of the US central bank’s interest rate policy going forward.
Domestically, Bank Indonesia’s (BI) April 2026 Consumer Survey shows that public confidence in the national economy remains in the optimistic zone.
This is reflected in the Consumer Confidence Index (IKK) for April 2026, which stood at 123.0, a slight increase from 122.9 in March 2026. An index level above 100 indicates that consumers still have optimism regarding the national economy.