US Dollar Hits Rp 18,000, Budget Committee Chair: Reaches Psychological Limit
The Chairman of the Budget Committee (Banggar) of the House of Representatives (DPR), Said Abdullah, assessed that the weakening of the rupiah against the US dollar, which has breached Rp 18,000 per US$, has surpassed a psychological limit. According to him, the maximum exchange rate for the rupiah should ideally not exceed the Rp 17,600 threshold.
“Today’s rupiah depreciation has touched a psychological level, especially as our financial markets, including the Jakarta Composite Index, are also down by approximately 3.04 per cent,” Said stated at the DPR Complex, Jakarta, on Thursday, 4 June 2026.
The legislator from the Indonesian Democratic Party of Struggle (PDI-P) emphasised that the decline in these two monetary indicators suggests the issue is no longer merely about economic fundamentals. According to him, the current condition is also influenced by policy governance that is causing investor hesitation.
Therefore, Said argued, the most urgent mitigation step required at this time is not just intervention in the financial markets, but the improvement of government governance. He noted that investors are currently paying great attention to legal certainty and the consistency of government policies. Transparency, accountability, and a focus on the President’s priority programmes are considered vital factors in building market optimism. “Every policy must be managed to be as transparent, accountable, and consistent in direction as possible,” he remarked.
Said noted that Bank Indonesia has indeed implemented various exchange rate stabilisation instruments through triple intervention schemes, covering the spot market, non-deliverable forward (NDF), and domestic non-deliverable forward (DNDF) markets. However, he argued that if synergy between these monetary policies and fiscal policies through improved government governance is not achieved, such interventions will fail to restore investor confidence.
“If synergy is not created, the market will lack confidence. Investors will no longer look at our economic fundamentals, but will be more influenced by perception,” he said. Said stressed that such perceptions could ultimately devastate economic fundamentals if the Financial System Stability Committee does not immediately undertake reforms and strengthening.
In Thursday morning trading, the rupiah exchange rate against the US dollar fell by another 0.27 per cent to reach Rp 18,015 per US.Thispositionrepresentsoneoftherupiah′sweakestlevelsinrecenttimes, markingthe′Garuda′currency′sarrivalatthenewpsychologicalthresholdofRp18, 000perUS.