Singapore Media Highlight Rupiah Weakness Amid Record Low
Several foreign media outlets are highlighting the weakening of the rupiah, including prominent Singaporean platforms. Two major sites, Channel News Asia (CNA) and The Straits Times, have dedicated significant coverage to the issue, with CNA quoting AFP and The Straits Times referencing Bloomberg.
CNA published the headline “Indonesian rupiah falls to record low against US dollar,” noting that the rupiah reached 18,028 against the greenback despite recent efforts by the central bank to provide support. The report stated that the Indonesian rupiah hit its weakest level against the US dollar on Thursday (4 June), breaching the psychological threshold of 18,000 amid concerns about the national economy amidst surging energy costs.
According to Bloomberg News, the rupiah has fallen by more than 7% this year, making it the worst-performing currency in Asia, as the US-Israel conflict involving Iran has caused global oil prices to surge. The report further explained that the weakness was triggered by high demand for the US dollar caused by the spike in oil prices and a narrowing trade surplus. It emphasised that Indonesia is a net oil importer and is heavily impacted by rising crude oil costs, amidst the government’s strenuous efforts to maintain subsidised fuel prices.
Local economist Josua Pardede, cited via AFP, noted that the nation’s trade surplus has been hit, narrowing to just US$89 million in April from US$3.3 billion the previous month, which further reduces the dollar supply in the Indonesian market.
The Straits Times published an article titled “Rupiah falls through key psychological level, putting markets on guard for intervention.” It reported that the rupiah’s fall below the key level of Rp 18,000 against the dollar has put market observers on alert. The exchange rate dropped 0.35% to 18,029.5 per US dollar at 11:06 am Singapore time, bringing the year-to-date depreciation in 2026 to over 7%.
Against the Singapore dollar, the rupiah also fell to a new low, trading at 14,047.71—a 0.32% decline overnight and a 9.3% drop since the start of the year. The rupiah is currently the worst-performing currency in Asia for 2026, partially pressured by fears that high oil prices will widen Indonesia’s budget deficit through higher energy subsidy costs.
Breaking below the 18,000 mark could accelerate foreign capital outflows from local stocks and bonds, making this level a critical test for policymakers attempting to restore confidence in an economy facing increasing challenges. Investor sentiment towards Indonesian assets worsened in 2026 after MSCI warned that the country could be reclassified, while Fitch Ratings and Moody’s Ratings revised their sovereign outlooks. Concerns have also risen regarding the government’s efforts to exert greater control over key commodity exports.