Global Uncertainty Remains High, Rupiah Still Under Pressure at Rp16,000

Persistent high global uncertainty continues to put pressure on the Indonesian Rupiah (IDR), keeping it above the Rp16,000 per US dollar level since December 16, 2024.

According to Bank Indonesia (BI) data, the Rupiah closed at Rp16,578 per US dollar on Friday, September 19, 2025, the end of last week's trading. This represents a weakening of Rp80 per US dollar (0.48%) compared to the previous day's closing of Rp16,498 per US dollar.

Thus, cumulatively this year, the Rupiah has weakened by Rp321 per US dollar or 2.61% from its position at the end of December 2024 of Rp16,157 per US dollar.

This anxiety in the financial sector is influenced by several factors, such as global security and the impact of the US trade war with several countries. This is suspected to be a trigger for market players to prefer the US dollar.

Last year, the Rupiah also weakened by 4.65% against the US dollar. Over the past decade, the Rupiah has weakened seven times, as shown in the graph. The Rupiah even plummeted by more than 9% in 2022 due to the impact of the Covid-19 pandemic.

Here is the latest Indonesian economic data:

• Economic growth: 4.99% (Semester I 2025)
• BI interest rate: 4.75% (September 17, 2025)
• Inflation (yoy): 2.31% (August 2025)
• Foreign exchange reserves: US$150.7 billion (August 2025)
• Rupiah exchange rate: Rp16,578 per US$ (September 19, 2025)