Rupiah Weakens to Rp 17,952 Despite Market Welcoming BI Rate Hike
The rupiah exchange rate against the US dollar is predicted to remain volatile, closing weaker in trading today. Based on the Jakarta Interbank Spot Dollar Rate (Jisdor) from Bank Indonesia, the rupiah stood at Rp 17,971 on Wednesday, 10 June 2026, strengthening by 170 points from the previous level of 18,141 on Tuesday. In spot market trading on Thursday, 11 June 2026, up to 09.05 WIB, the rupiah was transacted at Rp 17,952 per US dollar, a weakening of 8 points or 0.04 percent from the previous position of Rp 17,944 per US dollar.
Economic and money market observer Ibrahim Assuaibi stated that market players welcomed Bank Indonesia’s decision to raise its benchmark interest rate by 25 basis points to 5.5 percent on Tuesday, which aimed to stabilise the rupiah after repeatedly hitting record lows. The benchmark rate hike also assists the government in the auction of 10-year bonds, with a bond yield of 7.4 percent, with the expectation that both foreign and domestic investors will return to snap up government securities auctions. Confidence is further reinforced by the sovereign wealth fund Danantara’s pledge not to take profit margins on strategic commodity exports, and to respect existing contracts under the new centralisation framework.
The establishment of PT Danantara Sumberdaya Indonesia as a single gateway for strategic commodity exports is designed to strengthen governance, guarantee legal certainty, and optimise state revenue without disrupting exporters’ business continuity. This move is expected to dampen economic volatility by prioritising transparency. The rupiah is fluctuating but closed weaker in the range of Rp 17,900 to Rp 18,950. In related news, Washington launched new strikes against Iranian targets on Tuesday, following the downing of a US military helicopter near the Strait of Hormuz, reigniting concerns over broader disruptions to global energy supplies. Iran stated on Wednesday that it had targeted US bases in Jordan and several Gulf states in response to the American strikes. This latest escalation threatens to derail temporary progress towards de-escalation, after Iran and Israel agreed earlier this week to halt attacks following an appeal from Trump.