Flooring Guide by Cinvex – , JAKARTA — Bank Indonesia (BI) has attributed the recent weakening of the Indonesian Rupiah against the US Dollar, which has surpassed the Rp17,500 mark, primarily to global factors.
The Rupiah’s exchange rate opened at Rp17,541 per US Dollar on Wednesday morning, May 13, 2026, before recovering slightly to Rp17,474 per US Dollar by the close of trading.
Ramdan Denny Prakoso, Head of BI’s Communication Department, explained that the currency movements in several emerging markets, including Indonesia, are significantly influenced by global dynamics, particularly the ongoing conflict between the US, Israel, and Iran.
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This geopolitical tension has not only caused oil prices to surge by over 40% but has also pushed the yield on 10-year US Treasury bonds close to 4.5%, a rise of approximately 0.5 percentage points from 4% at the end of February.
“These global factors and dynamics are causing the majority of world currencies to weaken, not just the Rupiah,” Prakoso stated. “We’re seeing it in the Philippine Peso, the Thai Baht, the Indian Rupee, and even South American currencies like the Chilean Peso and the Korean Won,” he told reporters at the BI office complex in Jakarta on Wednesday, May 13, 2026.
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The complexity of the global situation is further compounded by seasonal factors. Ramdan noted an increased demand for dollars from Indonesian citizens due to the hajj pilgrimage season, corporate dividend repatriations, and the repayment of foreign debt.
In response, BI has implemented seven key measures to stabilize the Rupiah. The central bank remains confident that these initiatives will lead to a stable and strengthening Rupiah.
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“We are confident because Indonesia’s economic fundamentals are very strong compared to other countries,” he added.
Looking ahead, BI has stated its commitment to actively participate in both domestic and international markets.
“So, as soon as the Jakarta market closes, we are ready in the European market. We then stand ready in the American market to manage the Rupiah’s exchange rate movements, ensuring stability, especially considering the influence of NDF transactions abroad,” Ramdan elaborated.
Summary
Bank Indonesia (BI) attributes the Indonesian Rupiah’s recent depreciation against the US Dollar, surpassing Rp17,500, to global factors rather than domestic issues. Head of BI’s Communication Department, Ramdan Denny Prakoso, highlighted that geopolitical tensions, including the US, Israel, and Iran conflict, have driven up oil prices and US Treasury yields, weakening most global currencies, not just the Rupiah. Other affected currencies include the Philippine Peso, Thai Baht, and Indian Rupee.
Adding to the pressure are seasonal demands for dollars from Indonesian citizens for the Hajj pilgrimage, corporate dividend repatriations, and foreign debt repayments. BI has implemented seven measures to stabilize the Rupiah and is actively intervening in domestic and international markets to manage exchange rate movements, expressing confidence in Indonesia’s strong economic fundamentals and its ability to ensure currency stability.