Singapore Media Highlight Rupiah Weakness Amid Record Low

Jakarta, CNBC Indonesia - Several foreign media outlets have highlighted the weakening of the rupiah, including neighbouring Singapore’s. Two major sites, Channel News Asia (CNA) and The Straits Times, have devoted coverage to the issue. CNA cited AFP whilst The Straits Times referenced Bloomberg. CNA published an article titled “Indonesian rupiah falls to record low against US dollar”, featuring in an early summary how the rupiah “reached 18,028 against the greenback despite the central bank’s recent efforts to provide support”. “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 country’s economy with soaring energy costs,” the site wrote. “The rupiah has fallen more than 7% this year and is the worst-performing currency in Asia, according to Bloomberg News, as the US-Israel war against Iran causes global oil prices to surge,” it added. It was also stated how the weakening was triggered by high dollar demand caused by the oil price surge and a narrowing trade surplus. It was 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. “The country’s trade surplus has been hit, narrowing to just US$89 million in April, from US$3.3 billion a month earlier, further reducing the dollar supply in the Indonesian market,” the site stated, citing local economist Josua Pardede who referred to AFP. The Straits Times itself published an article titled “Rupiah falls through key psychological level, putting markets on guard for intervention”. It highlighted how the rupiah’s fall below the key 18,000 level against the dollar today has put market watchers on alert. “The Indonesian rupiah fell through the key psychological level of 18,000 per US dollar on June 4, putting market watchers on alert for intervention from the country’s central bank,” the site stated. “The rupiah exchange rate slid 0.35% to 18,029.5 per US dollar at 11.06 am Singapore time, bringing its year-to-date decline in 2026 to over 7%,” it wrote. “Against the Singapore dollar, the rupiah also fell to a new record low, trading at 14,047.71 – down 0.32% overnight and marking a 9.3% decline year-to-date,” it added. It was also noted that the rupiah is now the worst-performing currency in Asia in 2026, partly pressured by concerns that high oil prices will widen Indonesia’s budget deficit through higher energy subsidy costs. “The break below 18,000 could accelerate foreign outflows from local stocks and bonds, making the level a critical test for policymakers seeking to restore confidence in an economy facing mounting challenges,” the site added. “Investor sentiment towards Indonesian assets soured in 2026 after MSCI warned the country could be reclassified as a standalone emerging market, whilst Fitch Ratings and Moody’s Ratings revised their outlooks on the sovereign. Concerns have also increased over the government’s push for greater control over key commodity exports,” it further wrote.