Rupiah Under Pressure After Prabowo Rebuke

2026-05-12 05:50 By Farida Husna 1 min. read

The Indonesian rupiah weakened toward a fresh low of IDR 17,500 per dollar on Tuesday, extending losses for a fourth session as the U.S.

dollar firmed after President Trump warned the Iran cease-fire was “on life support".

Locally, pressure mounted amid doubts over Bank Indonesia’s capacity to defend the currency, with local media reporting President Prabowo reprimanded Governor Perry Warjiyo over the prolonged weakness.

Still, Prabowo endorsed seven BI measures, from tighter forex rules to liquidity tweaks and potential cuts to dollar purchase limits.

Domestic fundamentals added strain: April retail sales grew the least in nine months, consumer mood hovered near a five-month low, and foreign reserves fell for a fourth month to their lowest since mid-2024.

External risks compounded the slide, with Middle East tensions threatening energy costs, capital outflows draining bond and equity markets, and fiscal pressures deepening, leaving the rupiah vulnerable despite soft April inflation.



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