2015-2016, Indonesian Rupiah Exchange Rate Against the Yuan More Stable

The Indonesian Rupiah has shown relative stability against the Chinese Yuan compared to the US dollar and the Japanese Yen. Previously, the Rupiah's exchange rate against the US dollar was the sole benchmark for assessing the Indonesian economy, despite its high volatility and occasional lack of fundamental justification.

Following Donald Trump's election as US President for the 2017-2020 term, the Rupiah weakened against the US dollar due to external factors. President Joko Widodo called for a shift away from using the Rupiah-US dollar exchange rate as the sole indicator of Indonesia's economic health. This is especially relevant considering that Indonesia's trade volume with the US reached only US$23.8 billion, significantly less than its US$44.5 billion trade volume with China.

On December 7, 2016, the Rupiah exchange rate against the US dollar stood at Rp 13,333 per US dollar, a 6.3 percent weakening compared to its position on January 2, 2015. On the same date, the Rupiah exchange rate against the Japanese Yen was at 116.71, a 12 percent weakening from its early 2015 position. Conversely, the Rupiah strengthened by 4.16 percent against the Chinese Yuan, reaching Rp 1,926.7 per Yuan from Rp 2,010.4 per Yuan on January 2, 2015.