US Dollar Predicted to Breach Rp 18,200 Next Week, Economic Impacts Detailed

The rupiah is forecast to face continued pressure from the US dollar. Commodities and currency analyst Ibrahim Assuaibi predicts the US dollar could surge past Rp 18,200 next week. ‘For the rupiah this week, if not this week then next week, Rp 18,000 is already on the horizon. If the Rp 18,000 level is breached, it is likely to head towards Rp 18,200,’ said Ibrahim on Friday, May 29, 2026, as reported by detikFinance. If the dollar breaches Rp 18,000, this will trigger a domino effect. One consequence is psychological impacts on investors, both domestic and foreign, as market participants may abandon the rupiah to safeguard their assets. ‘Even if the dollar weakens, it does not lead to a strengthening of the rupiah. The rupiah continues to depreciate,’ Ibrahim said. ‘When the public perceives the dollar’s continued strengthening, they shift their savings from conventional accounts to foreign currency deposits,’ he added. Similarly, a sustained rupiah depreciation will significantly impact commodity prices, particularly finished imports and products with major raw materials sourced from abroad. Ibrahim cited that the majority of Indonesia’s soybeans are imported. A weaker rupiah would drive up domestic soybean prices, consequently increasing costs for soy-based products. ‘We observe that the rupiah’s depreciation leads to significant price hikes across the board, which is causing public distress,’ Ibrahim concluded.