Rupiah Weakens to Rp 17,744, Forecast to Hit Rp 17,800 Tomorrow

JAKARTA - The rupiah closed weaker in the spot market on Monday (25 May 2026). The Indonesian currency depreciated 27 points or 0.15 percent to Rp 17,744 per US dollar. The rupiah’s weakness is attributed to domestic and global sentiments that remain unfavourable for Indonesia’s financial markets. It is forecast to plunge to Rp 17,800 per US dollar on Tuesday (26 May 2026). Domestically, Ibrahim noted that the budget deficit remains a key concern for market participants. He added that despite a decline in global oil prices, this has not been enough to boost positive sentiment towards the rupiah. “From an internal perspective, the budget deficit issue remains a bugbear for the market. Even with falling oil prices, it still hasn’t lifted positive sentiment for the rupiah,” he said. “Our neighbours’ currencies are all green, but Indonesia’s is red,” Ibrahim added. Additionally, President Prabowo Subianto’s speech regarding commodity exports through a single channel has raised concerns among global investors. Ibrahim assessed that the policy could trigger negative ratings from international credit agencies. Several government policies perceived as unfriendly to the market have further pressured the rupiah’s movement. Externally, Ibrahim noted both positive and negative sentiments affecting the rupiah’s movement. One positive sentiment stems from market optimism over the potential for a peace deal between the US and Iran.