TEMPO.CO, Jakarta - The rupiah exchange rate has once again plummeted on Thursday morning, May 28, 2026, to the level of Rp17,870 per US dollar. Director of PT Traze Andalan Futures, Ibrahim Assuaibi, laid out the external and internal factors to today's rupiah depreciation.
External factors affecting the exchange rate development include escalating geopolitical tension in the Middle East. Furthermore, the US central bank is expected to maintain interest rates until the end of the year, causing a significant strengthening of the dollar.
In terms of internal factors, Ibrahim stated that the rupiah depreciation was caused by various reasons. "Internally, the depreciation of the rupiah is supported by the surging oil prices, high demand for dollars due to substantial oil imports, dividend payments, people moving their savings into foreign exchange, and maturing debts amounting to Rp600 trillion," said Ibrahim in his statement on Thursday, May 28, 2026.
Ibrahim also underscored the poor management of Red and White Village Cooperatives and the free nutritious meal (MBG) program. Governance issues in these two flagship programs, he said, have become a major concern for investors that triggered foreign capital outflow from the domestic market.
Ibrahim predicted that the rupiah exchange rate will further approach the level of Rp18,000 per US dollar, as Bank Indonesia can only intervene in the international market on national holidays. "In today's trading, the rupiah is likely to weaken by 100 points to the level of Rp17,900 per US dollar," he stated.
Minister of Finance Purbaya Yudhi Sadewa stated that the current depreciation of the rupiah is inappropriate.
“Actually, it doesn’t make sense. It usually weakens when there are disruptions in the economic fundamentals,” he said after attending Eid al-Adha prayers at the Directorate General of Taxation headquarters in Jakarta on the same day.
However, he stressed that he is not worried about the situation and said the government does not need to revise assumptions in the 2026 State Budget (APBN), even as the rupiah moves further from the projected range.
Ilona Estherina contributed to the writing of this article.
Read: Finance Minister Unconcerned as Rupiah Falls Past 17,800
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