Trump Impeachment and Protest Unrest Weaken Rupiah

The Indonesian Rupiah closed 0.23% weaker against the US dollar at Rp 14,177.5/US$ on Thursday (26/9). This weakening began earlier in the week, coinciding with student protests in Gejayan, Yogyakarta, against several revisions and draft laws by the House of Representatives (DPR).

The Rupiah weakened 0.21% to Rp 14,085/US$ on Monday (23/9). The sharpest weakening occurred when protests by senior high school (SMA) and vocational high school (STM) students turned violent on Wednesday (25/9). The Rupiah weakened 0.27% to Rp 14,150/US$.

Senior Deputy Governor of Bank Indonesia, Destry Damayanti, stated that the Rupiah's weakening was caused by consecutive waves of demonstrations, creating unease in the Indonesian financial market. In addition, several external sentiments also influenced the Rupiah's movement, including the push for the impeachment of US President Donald Trump by the Democrat-dominated US Congress. The slowdown in US economic growth to 2.1% in Q2 2019, down from 3.1% in the previous quarter, also served as a negative sentiment, weakening the Rupiah.

(Read Databoks: [Rupiah Exchange Rate Approaches its Lowest Level This Year](https://databoks.katadata.co.id/datapublish/2019/05/09/nilai-tukar-rupiah-mendekati-level-terendahnya-tahun-ini))