The rupiah exchange rate strengthened at the opening of trading on Monday (February 23, 2026) to Rp16,868 per US dollar, influenced by the US Supreme Court's decision to annul parts of Donald Trump's tariff policies. Additionally, a new trade agreement between Indonesia and the US supported this strengthening. Analysts predict fluctuations will continue in the currency market.
On Monday (February 23, 2026), the rupiah exchange rate against the US dollar strengthened by 20 points or 0.12 percent to Rp16,868 per US dollar from the previous level of Rp16,888, according to trading data in Jakarta. This strengthening was driven by the US Supreme Court (MA AS) ruling on Friday (February 20, 2026), which by a 6-3 vote annulled President Donald Trump's authority to impose global tariffs under the International Emergency Economic Powers Act (IEEPA).
Currency analyst from Doo Financial Futures, Lukman Leong, stated, "The rupiah has potential to strengthen against the sharply weakening US dollar after economic growth data fell far below expectations and the Supreme Court's decision to annul Trump's tariffs." US economic growth reached only 1.4 percent, well below the 3 percent forecast, due to government shutdown and weak purchasing power from tariffs.
Trump described the ruling as "very disappointing" and accused the US Supreme Court of being influenced by "foreign interests," while affirming that national security tariffs remain in effect. US Treasury Secretary Scott Bessent said the decision delivers a serious blow to the American people and reduces Trump's influence.
Meanwhile, on the same Friday, Indonesian President Prabowo Subianto and US President Donald Trump signed a reciprocal trade agreement titled Implementation of the Agreement toward New Golden Age US-Indonesia Alliance in Washington DC. The document includes 11 memoranda of understanding, the establishment of a permanent economic council, tariff reductions for thousands of products, and commitments to purchase energy and aircraft.
Economist observer Ibrahim Assuaibi predicted the rupiah would fluctuate but tend to weaken in the range of Rp16,880-Rp16,910 by the end of the day. OCBC Bank analyst Sim Moh Siong added that the US Supreme Court ruling weakens the dollar and supports global growth, though long-term implications remain unclear. Markets are also monitoring risks of conflict in the Middle East and Trump's state of the union address on February 24, 2026.
