Rupiah Weakens to Rp16,893 per US Dollar, Driven by Oil Price Surge
The Indonesian rupiah weakened 7 points or 0.04 per cent to Rp16,893 per US dollar at the close of trading in Jakarta on Thursday, 12 March 2026, compared to the previous rate of Rp16,886 per dollar. Money market analyst Ibrahim Assuaibi attributed the rupiah’s decline to a surge in global oil prices that briefly breached $100 per barrel.
“Media reports indicated that two international oil tankers were struck near Iraq. Other reports showed Oman evacuating its main oil export terminal, whilst Iran appeared to be blocking the Strait of Hormuz, which serves as the primary supply route for approximately one-fifth of the world’s oil,” Ibrahim stated in a written statement in Jakarta on Thursday.
The oil price increase has prompted market participants to exercise caution regarding potential long-term inflation escalation. This has generated concerns about the possibility of more aggressive monetary policy measures from central banks in the coming months.
Despite US President Donald Trump repeatedly declaring that the war with Iran was nearly over, the conflict between the United States and Israel against Iran continues to persist.
Additional sentiment came from the February 2026 US Consumer Price Index (CPI) release, which increased 0.3 per cent on a month-on-month basis, up from 0.2 per cent in the previous month and in line with market expectations.
“The February CPI data in line with expectations provides limited guidance. However, the PCE inflation data remains awaited. Although the figures align with forecasts, this has not significantly diminished concerns regarding future price pressures driven by the energy sector,” Ibrahim said.
He added that market attention this week is focused on PCE price index data to be released on Friday, 13 March.
“The data represents the Federal Reserve’s preferred inflation benchmark and is likely to be an important factor in long-term inflation expectations,” Ibrahim stated.
Meanwhile, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened to Rp16,899 per US dollar on Thursday, compared to the previous rate of Rp16,867 per dollar.