Indonesian Rupiah Weakens Against US Dollar

At the start of 2026, the Indonesian Rupiah is experiencing limited weakening against the US Dollar. This movement is driven by various factors, including global economic conditions and changes in central banks’ policies. Experts note that the Rupiah has been influenced by recent announcements from the US Federal Reserve regarding potential interest rate hikes. These news have increased the demand for the dollar, leading to the weakening of the Rupiah. Meanwhile, Bank Indonesia is actively taking measures to stabilize the situation, including market interventions. International trade is also gaining importance where Indonesian exporters’ competitiveness is under pressure due to the changing exchange rates. The impact of the exchange rate on Indonesia’s economy can be significant, affecting sectors like import and export, as well as general inflation. Predicting the future developments is challenging, and the government is closely monitoring the situation to take timely actions to support the currency.