Rupiah Weakens to Rp17,785 as Market Worries Over Fiscal Policy and DSI Export Policy Persist

Rupiah exchange rate against the US dollar is forecast to remain volatile but closed weaker today. According to Jakarta Interbank Spot Dollar Rate (Jisdor) data from Bank Indonesia, the rupiah stood at Rp17,743 per US dollar on Monday, 25 May 2026, a 26-point decline from Friday’s closing rate of 17,717. Spot trading on Tuesday, 26 May 2026, up to 09:46 WIB saw the rupiah traded at Rp17,785 per US dollar, a 42-point (0.23%) drop from Monday’s level of Rp17,743.

Economist and currency market analyst Ibrahim Assuaibi said the rupiah is expected to weaken further due to domestic and global sentiments that remain unfavourable for Indonesia’s financial markets. Domestically, Assuaibi noted that the budget deficit remains a key concern for market participants. Despite falling global oil prices, he said this has not boosted positive sentiment towards the rupiah.

Assuaibi added that the budget deficit continues to weigh on the market, and even with declining oil prices, it has failed to lift positive sentiment for the rupiah. He also highlighted that regional currencies are strengthening, while the rupiah remains in the red. ‘We see neighbouring countries’ currencies all in green while Indonesia is red,’ Assuaibi said in his daily research on Tuesday, 26 May 2026.

Additionally, President Prabowo Subianto’s speech regarding commodity export policy through a one-stop mechanism (DSI) has raised concerns among global investors. He said the policy could trigger negative assessments from international rating agencies. Furthermore, Assuaibi added that Prabowo’s remarks on the one-stop commodity export policy via Danantara have drawn criticism from international rating agencies. Agencies such as S&P Global are likely to downgrade Indonesia’s government debt rating.

Several government policies perceived as unfriendly to the market are additional factors pressuring the rupiah.