Rupiah Slips Further on Policy Doubts, Falling Exports

2026-05-04 06:07 By Farida Husna 1 min. read

The rupiah weakened for a second session on Monday, hovering near IDR 17,370 per dollar, as doubts lingered over the central bank’s policy effectiveness after holding rates steady since October.

External pressures mounted, with Indonesia's exports down for the first time in four months in March, while imports grew the least since December, reflecting soft domestic demand following higher non-subsidized fuel prices.

Sentiment remained cautious ahead of Tuesday’s Q1 GDP data, with markets bracing for a slowdown from Q4’s three-year high amid fiscal strain and debt burdens.

Concerns over buffer capacity persisted as Indonesia's foreign reserves hit a near two-year low in March, adding pressure on the rupiah.

Still, inflation offered some relief, easing to 2.42% in April, the lowest in eight months, though risks remained as unresolved Middle East tensions kept oil prices elevated.

Globally, the U.S.

dollar index held steady, with traders watching for signs of regional forex stabilization.



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