The rupiah reached Rp17,500 per US dollar on Tuesday, May 12, 2026. The pressure stems from a mix of global and domestic factors.
Economist Dr Surya Vandiantara said the rupiah's weakening is not unique to Indonesia. Most Asian countries are facing similar pressure due to the United States winning sentiment over its conflict with Iran.
Bank Indonesia data shows the rupiah has weakened 3.65 percent since the start of the US-Iran conflict. This figure is lower than the Philippine peso's 6.58 percent drop and Thailand's baht decline of 5.04 percent.
BI Deputy Governor Senior Destry Damayanti said domestic factors such as foreign debt payments, dividends, and hajj needs have also added pressure. BI remains committed to smart interventions in the market to ease the strain.
