April 20, 2026 | 01:47 pm
TEMPO.CO, Jakarta - The rupiah strengthened by 34 points, or 0.20 percent, on Monday morning, climbing to Rp17,155 per US dollar from its previous close of Rp17,189.
Lukman Leong, a currency analyst at Doo Financial Futures, noted that the rupiah's appreciation was influenced by the government's decision to increase the prices of non-subsidized fuels.
"The rupiah has the potential to strengthen against the US dollar following the government's move to raise non-subsidized fuel prices, which is considered a means to alleviate the burden on the State Budget (APBN)," he told Antara in Jakarta on Monday.
State-owned oil and gas firm Pertamina recently adjusted the prices for several of its non-subsidized fuel products, including Pertamax Turbo, Dexlite, and Pertamina Dex, effective as of Saturday, April 18.
On its official website, Pertamina clarified that the price adjustments for general fuel oil were calculated based on the basic price formula used to determine retail prices for gasoline and diesel distributed through public gas stations.
This formula is in accordance with the Energy Ministerial Decree (Kepmen ESDM) No. 245.K/MG.01/MEM.M/2022, which serves as an amendment to Ministerial Decree No. 62 K/12/MEM/2020.
Conversely, the ongoing uncertainty surrounding the status of the Strait of Hormuz has cast a shadow over the rupiah’s performance.
"Investors also tend to maintain a 'wait-and-see' approach regarding the outcome of the US-Iran negotiations on Monday and the Bank Indonesia Board of Governors Meeting on Wednesday, April 22. However, the status of the Iran-US negotiations remains uncertain," Lukman remarked.
Regarding the Bank Indonesia meeting, he added that while interest rates are expected to remain steady with consistent rhetoric, there is a shift in the air. "Considering the recent pressure on the rupiah, I see a potential for an interest rate hike," he concluded.
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