Rupiah Hits Record Low, Intervention Limits Losses

2026-04-07 04:02 By Farida Husna 1 min. read

The Indonesian rupiah slid to a record low of around IDR 17,080 per dollar on Tuesday, extending its downtrend as the dollar index firmed.

Pressure mounted amid escalating Middle East tensions, with President Trump setting a deadline for Iran to strike a deal or face possible attacks.

Bets that the U.S.

Fed will hold rates steady this month further buoyed the greenback.

Locally, surging oil prices and geopolitical risks stoked inflation concerns and strained fiscal conditions, notably under President Prabowo’s flagship program, weighing on the current account.

External buffers weakened as February’s trade surplus narrowed on softer exports and higher imports, while forex reserves fell to a three-month low in February.

Capping losses, Bank Indonesia confirmed intervention in spot and non-delivery forward markets to support the currency.

Meantime, the government pledged to maintain fuel subsidies and cap the fiscal deficit at 3% of GDP this year, assuming oil averages USD 100 per barrel.



News Stream
Rupiah Hits Record Low, Intervention Limits Losses
The Indonesian rupiah slid to a record low of around IDR 17,080 per dollar on Tuesday, extending its downtrend as the dollar index firmed. Pressure mounted amid escalating Middle East tensions, with President Trump setting a deadline for Iran to strike a deal or face possible attacks. Bets that the U.S. Fed will hold rates steady this month further buoyed the greenback. Locally, surging oil prices and geopolitical risks stoked inflation concerns and strained fiscal conditions, notably under President Prabowo’s flagship program, weighing on the current account. External buffers weakened as February’s trade surplus narrowed on softer exports and higher imports, while forex reserves fell to a three-month low in February. Capping losses, Bank Indonesia confirmed intervention in spot and non-delivery forward markets to support the currency. Meantime, the government pledged to maintain fuel subsidies and cap the fiscal deficit at 3% of GDP this year, assuming oil averages USD 100 per barrel.
2026-04-07
Pressure on Rupiah Persists amid Strong Dollar, Energy Risks
The Indonesian rupiah hovered around IDR 17,050 on Monday, extending weakness for a third session as the U.S. dollar firmed amid escalating Iran tensions after President Trump set a new deadline and intensified threats against Tehran. Prolonged energy shocks risk lifting inflation in Southeast Asia’s largest economy, worsening current account dynamics via a higher import bill. External buffers also showed strain, with February’s trade surplus narrowing on softer exports and elevated imports. On inflation, while March figures eased to 3.48% and returned to Bank Indonesia’s target range following February’s 4.76%, risks remain skewed upward. Markets also awaited March’s foreign reserves data after February’s drop to a three-month low. Medium-term commodity pressures could add fiscal strain as President Prabowo advances his flagship programs. Still, downside pressure was tempered by expectations that the central bank will remain cautious after 150bps of rate cuts since September 2024.
2026-04-06
Rupiah Near 17,000 on Oil Risks, Fiscal Concerns
The Indonesian rupiah hovered near the key IDR 17,000 level on Friday in holiday-thinned trade, heading for a modest weekly decline amid a firm U.S. dollar index as Middle East tensions persisted. President Trump said the war with Iran could last another two to three weeks, though he signaled it was nearing an end. Domestically, caution lingered ahead of March's forex reserves data after February’s drop to a three-month low. Trade figures showed subdued exports despite resilient imports during the festive period, underscoring external pressures. Inflation risks also grew amid elevated oil prices, even as annual figures eased in March, back within Bank Indonesia’s target. As a net oil importer, Indonesia remains vulnerable to sustained energy costs, which could widen the fiscal deficit under President Prabowo’s spending plans. Authorities are exploring measures to limit the impact, while Bank Indonesia has moved to curb speculation after cutting rates by 150bps since September 2024.
2026-04-03