US Dollar Touches Rp 18,000, Government Confident in Strong Economic Fundamentals

“What is certain we can convey is that we must be confident that our economic fundamentals, reflected in our economic growth and controlled inflation, are indeed quite strong,” said Susiwijono Moegiarso at the Presidential Palace complex in Jakarta on Thursday evening (4/6/2026). Moegiarso emphasised that the government, through the Ministry of Finance, Bank Indonesia (BI), and the Financial Services Authority (OJK), is coordinating intensively. He confirmed the government is taking a number of steps to address the depreciation of the rupiah against the US dollar. “We in the government, in this case the Ministry of Finance, Bank Indonesia, and the Financial Services Authority, continue to coordinate intensively to monitor the situation and take the necessary steps,” he said.

It is understood that the US dollar is increasingly strengthening against the rupiah, with the American currency now breaching the Rp 18,000 level. Bank Indonesia Senior Deputy Governor Destry Damayanti stated that the current rupiah depreciation is still influenced by rising geopolitical tensions in the Middle East. This situation is keeping oil prices high and increasing global inflation risks, as well as prompting capital outflows from emerging countries. On the domestic side, she noted that dollar demand remains large for dividend repatriation and external debt payments. “Domestic demand is also still quite high in line with the pattern of dividend repatriation and foreign debt payments,” Destry said in a written statement on Thursday (4/6). She added that the depreciation of the rupiah is also being experienced by other regional currencies. “In general, the rupiah’s weakening is still in line with the regional trend, depreciating 7.44% year-to-date. Foreign exchange reserves remained maintained at US$146.2 billion at the end of April 2026,” Destry stated.