According to data from Bank Indonesia's (BI) Jakarta Interbank Spot Dollar Rate (JISDOR), the exchange rate of the United States (US) dollar against the rupiah was Rp16,838 at the close of trading on Friday (23/1/2026).
The exchange rate strengthened by 0.37% from Thursday's (22/1/2026) closing rate of Rp16,902.
Today's market close marked the third time it has strengthened after collapsing over the past week.
Notably, the exchange rate was Rp16,880 on 15/1/2026, Rp16,935 on 19/1/2026, and Rp16,981 on 20/1/2026.
Despite strengthening, the exchange rate at today's close has weakened by 0.67% from Rp16,725 per US$ since the beginning of this year (year-to-date/ytd).
Signs of rupiah strengthening emerged this morning. Quoting Katadata, Economist, Currency, and Commodity Observer, Ibrahim Assuaibi, stated that this is because the market is optimistic that the government can overcome the practice of import and export under-invoicing and close the state budget deficit.
“The issue of export under-invoicing has actually been ongoing for a long time, but it has only recently gained attention. After a budget deficit in the State Budget (APBN) approaching 3% in 2025, the rupiah currency has continued to contract,” said Ibrahim in his statement on Friday (23/1/2026).
On the other hand, global conditions causing the US dollar to weaken include US President Donald Trump's statement backing down from European tariff threats and announcing a framework for an agreement regarding Greenland.
In his speech at the World Economic Forum (WEF) in Davos, Trump refrained from mentioning tariffs or military action over Greenland.
“Trump also said that the use of military force would not be pursued. Gold prices closed at $4,830, up 1.4%,” he said.
Trump even warned that if no agreement was reached on Greenland, he would consider Europe's response to his demands.
Quoting Bloomberg, Ibrahim mentioned that Trump would back down from imposing tariffs on goods from European countries that opposed his efforts to take over Greenland.
(Read Katadata: Rupiah Reverses Course This Morning, Strengthening Following US-Greenland Geopolitical Conditions)