S&P Forecasts Rupiah Exchange Rate at Rp 17,700 per US Dollar

International rating agency S&P Global Ratings has projected the rupiah exchange rate against the United States dollar will reach Rp 17,700 per US dollar in 2026. Although lower than the rupiah’s trading position today (13/7/2026) of Rp 18,100 per US dollar, the projection is higher than the government’s target range of Rp 16,200 per US dollar to Rp 16,800 per US dollar. On a positive note, S&P Global Ratings has decided to maintain Indonesia’s credit rating at BBB for the long term and A-2 for the short term. Meanwhile, Indonesia’s outlook remains stable. In a report released on 13 July 2026, S&P assessed that the weakening of several Indonesian economic indicators, both fiscal and external, is temporary and has the potential to improve in the coming years. “We affirmed Indonesia’s credit rating at BBB for the long term and A-2 for the short term. The long-term rating outlook remains stable,” S&P wrote in its report. S&P acknowledged that Indonesia’s fiscal and external positions have been under pressure recently. This condition was triggered by high energy prices, rising global interest rates, the weakening rupiah exchange rate, increased policy uncertainty, and debt accumulation. Nevertheless, S&P assessed that these pressures are not permanent.