Rupiah Weakens: What is the Impact on Indonesian Students Abroad?

The weakening of the Rupiah is making many aspects of life more difficult. The exchange rate plummeted today, Thursday (4/6/2026), to the level of Rp 18,000 per US Dollar. This depreciation means that parents sending their children to study abroad must spend more due to the larger conversion rate.

Studying in Melbourne has not suddenly become more expensive in terms of local costs; universities maintain the same fees, rental prices for apartments remain unchanged, and even the price of morning coffee on campus is roughly the same. However, for many parents in Indonesia, the bills are swelling. As the Rupiah weakens, every Australian Dollar, British Pound, or US Dollar requires more Rupiah to purchase, making the same educational costs feel significantly more expensive.

For some families, the difference is not merely hundreds of thousands of Rupiah, but tens to hundreds of millions of Rupiah per year. Thousands of families face this same issue. Australia hosts approximately 25,450 Indonesian students, making it the largest study destination, followed by Malaysia with around 10,000, and the United States with over 8,000. Japan, the UK, and Germany also serve as homes to thousands of other Indonesian students.

While some students are on scholarships, many rely on funds sent by their families from Indonesia every month. Consequently, when the Rupiah weakens, the impact extends far beyond the foreign exchange market, reaching student dormitories in Sydney, London, Boston, and Tokyo.

The most visible impact is on tuition fees. In Australia, tuition costs of AUD 40,000 per year, which previously equated to approximately Rp 420 million, have risen to around Rp 480 million. While there has been no change to the campus or study programme, families must prepare an additional Rp 60 million. In the United States, tuition of US$ 25,000 per year has risen from about Rp 387.5 million to Rp 450 million, a difference of Rp 62.5 million. However, the greatest pressure comes from the United Kingdom, where tuition of £ 25,000, previously worth about Rp 475 million, is approaching Rp 575 million. Due to the exchange rate alone, the family burden has increased by approximately Rp 100 million per year.

While tuition fees are the largest single expense, the most palpable impact is on daily living costs. Rent, food, transport, internet, and routine necessities must be paid every month. In the US, living costs of around US$ 1,500 per month, previously equivalent to Rp 23.2 million, are nearing Rp 27 million, meaning families need to send an extra Rp 3.8 million every month just to maintain the same standard of living. In Australia, student living costs in Sydney or Melbourne generally range from AUD 1,800 to AUD 3,500 per month; as the Rupiah weakens, the increased burden is felt immediately in routine spending. In the UK, similar pressure arises from living costs in London, where the British government requires proof of funds of up to £ 1,529 per month for international students.

Not all students face the same situation. Scholarship recipients receiving funding in the destination country’s currency are relatively protected from exchange rate volatility. Conversely, students funded by families must convert Rupiah into foreign currency every time they pay for tuition or living expenses. Within the same campus, some students may barely feel the impact, while others must revise budgets, seek cheaper accommodation, or request additional funds from home.

The pressure from the weakening Rupiah is uneven. The UK is one of the most expensive study destinations due to the combination of high tuition and a strong Pound Sterling. The US offers a different challenge with high tuition and high living costs in cities like New York or Boston. While Australia may not produce as much additional cost per student as the UK, the impact is felt by more families because it hosts the largest number of Indonesian students. Meanwhile, Malaysia remains relatively affordable in terms of both education and living costs, and Japan tends to exert more moderate pressure compared to English-speaking nations.

For some, the weakening Rupiah might only appear as a figure on a mobile screen or a news headline. However, for families sending money abroad every month, that figure has a much more concrete meaning. Ultimately, exchange rate movements are not just a story of financial markets; for thousands of Indonesian families, they determine the true price of an education.