TEMPO.CO, Jakarta - The rupiah exchange rate until Tuesday afternoon, May 26, 2026, remained above the level of Rp17,700 per US dollar. Google's data showed that by 12:00 p.m. Jakarta time, the rupiah had weakened to Rp17,792 per US dollar, while Bloomberg's data stated that the spot exchange rate for the rupiah at the same time was Rp17,793 per US dollar, a 50-point decline.
The rupiah is growing increasingly powerless in the face of the strengthening US dollar. Director of PT Traze Andalan Futures, Ibrahim Assuabi, predicted that the Indonesian currency will continue to weaken tomorrow, as the Eid al-Adha celebration will result in an extended weekend break for the domestic market.
"Bank Indonesia cannot intervene in the domestic market, bonds, and state debt securities; it can only do so in the international market. This will cause the rupiah to weaken yet again," he said on Tuesday, May 26, 2026.
According to Ibrahim, the rupiah depreciation this afternoon is still influenced by the turmoil in the Middle East, which sent the global oil prices swinging. He predicted that the Indonesian rupiah will reach a new low of Rp18,000 per US dollar this week.
Earlier, Bank Indonesia Governor Perry Warjiyo believed that the rupiah would reverse course and strengthen in the back half of 2026. He explained that this movement follows the pattern that has been occurring whenever the rupiah is under pressure.
"I don't want to be arrogant, but I happened to live through crisis after crisis. In 1997-1998, I was there. The global situation in 2008, the taper tantrum, was also like that. Covid as well; indeed, the exchange rate pressures generally tend to strengthen around July-August," Perry said last week.
The central bank chief stated that currently, the rupiah is lower than its fundamental value, or undervalued. Perry uses the macro assumption basis of the State Budget which targets the rupiah at an average level of Rp16,500 with an upper limit of Rp16,800 per US dollar.
He is confident that he can bring the rupiah back to that level and strengthen it. According to him, the current weakened condition of the rupiah is influenced by seasonal factors, namely the demand for foreign exchange (forex).
"April, May, June, the demand for foreign exchange is usually high. There are pilgrims, then dividends, and also debt payments," he said, adding that he's confident the rupiah situation will improve in upcoming July.
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