Rupiah Weakens to Rp17,963 as US Imposes Import Tariffs on Indonesia

The rupiah exchange rate against the US dollar at the close of trading on Friday weakened by 27 points, or 0.15 percent, to Rp17,963 per US dollar, compared to the previous close of Rp17,936 per US dollar. Money market analyst Ibrahim Assuaibi stated that the rupiah’s depreciation was influenced by the imposition of import tariffs by US President Donald Trump on Indonesia. “Trump officially imposed new import tariffs on goods from 60 trading partners starting Friday (24/7). The policy sets tariffs of 10 percent and 12.5 percent on various imported products, including goods from Indonesia,” he said in a written statement in Jakarta on Friday. The implementation of these new tariffs follows the expiration of a temporary 10 percent tariff policy that had been in place for 150 days. The US government stated that the policy is a measure to encourage trading partner countries to tighten bans on products made using forced labour. Additionally, stronger-than-expected US labour market data added to concerns that the Federal Reserve could maintain a restrictive policy stance. “Initial jobless claims unexpectedly fell to 187,000, the lowest level in decades, pushing the benchmark 10-year Treasury yield to its highest level since January 2025,” Ibrahim revealed. Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also weakened today to Rp17,973 per US dollar from the previous Rp17,915 per US dollar.