SOE Restructuring Issue Drives Rupiah Strengthening to Rp 17,851 Level

The rupiah exchange rate against the US dollar strengthened towards the Rp 17,800 per US dollar level. Analysts assess that the strengthening of the Garuda currency was influenced, among other things, by the issue of restructuring state-owned enterprises (BUMN). Quoting Bloomberg, the rupiah strengthened by 71 points or 0.40 percent to Rp 17,851 per US dollar at the close of trading on Monday (29/6/2026). Currency and Commodities Analyst Ibrahim Assuaibi stated there were a number of sentiments influencing the rupiah’s movement, both from within and outside the country. Domestically, he mentioned that market players are still awaiting several economic indicators in early July 2026, namely Indonesia’s trade balance data and the inflation rate. Both sets of data are expected to be important considerations for reading the national economic condition and the future direction of the rupiah. Furthermore, the restructuring of state-owned enterprises (BUMN) is also considered a strategic step. President Prabowo previously stated he would cut the number of SOEs from around 1,000 to approximately 250 companies. The reduction in the number of SOEs is seen as an instrument to save the budget. As is known, the condition of the State Revenue and Expenditure Budget (APBN) deficit was one of the main highlights when the rupiah briefly breached its lowest level above Rp 18,000 per US dollar in early June 2026. This reduction in the number of SOEs aims to reduce the large budget burden while simultaneously increasing efficiency. Another internal sentiment is the government’s decision to decline an offer of financial assistance amounting to 30 billion US dollars from the International Monetary Fund (IMF). This step is considered a signal that the government has confidence in the national economy’s ability to face global pressures. For market players, this decision reinforces the government’s optimism regarding the strength of Indonesia’s economic fundamentals.