Trade Minister: Weakening Rupiah Should Boost Export Competitiveness
Trade Minister Budi Santoso said Indonesia’s export commodity prices have become cheaper in global markets due to the rupiah’s depreciation. ‘When the rupiah weakens, our competitiveness should be strong, right?’ he said at the Ministry of Trade complex on Monday, 25 May 2026.
Budi added that businesses should capitalise on the rupiah’s depreciation to boost exports, as lower prices for Indonesian goods would make them more competitive internationally.
Previously, Ibrahim Assuaibi, Director of PT Traze Andalan Futures, predicted the rupiah would remain around Rp17,000 per US dollar at Monday’s market opening. This continues the weakening trend from Friday’s close at Rp17,712 per dollar. ‘For the week, it’s likely to be between Rp17,680 and Rp17,800 per dollar,’ he said on Friday, 22 May.
However, the rupiah strengthened by 21 points or 0.12% to Rp17,696 per dollar on Monday morning compared to Friday’s closing rate of Rp17,717.
According to Doo Financial Futures currency analyst Lukman Leong, the rupiah’s strengthening was due to hopes of peace between the US and Iran. ‘The rupiah is expected to strengthen against the US dollar amid hopes of peace in the Middle East and falling crude oil prices in response to Trump’s statement that negotiations with Iran are progressing constructively,’ he said in Jakarta on Monday, 25 May.
Trump confirmed that a deal to end the war with Iran has ‘largely been negotiated’ and will be finalised soon. He said discussions on the draft agreement had been conducted ‘very well’ with regional leaders.
Washington and Tehran continue to negotiate proposals and counter-proposals through Pakistan’s mediation, concerning the opening of the Strait of Hormuz, addressing nuclear programme concerns, and lifting sanctions.
Domestic sentiment improved since last Friday, with equity markets closing positively. ‘However, the rupiah remains under pressure due to a large current account deficit,’ Lukman said. Based on these factors, he predicted the rupiah would trade between Rp17,600 and Rp17,750 per dollar.