Rupiah Weakens to Rp 17,677 per US Dollar, IHSG Expected to Move Volatile

The rupiah exchange rate on Friday morning weakened by 10 points or 0.06 percent to Rp 17,677 per U.S. dollar, compared with the previous close at Rp 17,667 per U.S. dollar. Meanwhile, the Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) was set to move volatile, driven by a combination of domestic and global sentiment.

Permata Bank Chief Economist Josua Pardede said the rupiah’s weakness was influenced by domestic policy uncertainty. “The rupiah depreciated against the U.S. dollar, influenced by domestic policy uncertainty,” he said in Jakarta on Friday (22 May 2026).

Investors are said to be starting to anticipate new policies related to export governance processes that will centralise export transactions for several commodities under a State-Owned Enterprise (BUMN).

In addition, investors are shifting to other assets ahead of MSCI’s announcement in June.

Josua noted that the strengthening of the U.S. dollar occurred following the release of a number of positive U.S. economic indicators.

On the labour market side, U.S. initial unemployment claims for the week ended 16 May 2026 fell to 209,000 from 212,000 previously. The figure was lower than market expectations of 210,000, indicating that the U.S. labour market remains tight.

Meanwhile, on the real sector, the Preliminary S&P Global PMI Manufacturing unexpectedly rose to 55.3 in May 2026 from 54.5. The figure beat expectations of 53.8 and signalled resilience in the U.S. manufacturing sector amid global uncertainty.

The release of these data suggests that the U.S. economy remains resilient, reducing expectations of monetary easing by the Fed.

“However, later in the session, the rally in the U.S. dollar was capped as optimism about a potential peace deal resurfaced after the Iranian government stated that the latest proposal from the U.S. had begun to bridge the gap between the two sides,” Josua said.

Based on these factors, the rupiah is expected to move in a range of Rp 17,600 to Rp 17,725 per U.S. dollar.