A new low
According to The Jakarta Post, republished by Asia News Network, the rupiah fell to Rp 18,000 per dollar, a record. Its decline since the start of 2026 exceeded 7%.
Back in April, Reuters reported a then-record low of about Rp 17,090. At that point Bank Indonesia intervened in the spot and non-deliverable forward markets.
The report described the rupiah as Asia's worst-performing currency this year. The Rp 18,000 level was a psychologically important mark for the market.
What is weighing on the currency
The report points to several factors. Oil prices climbed on supply disruptions linked to the Iran war, with Brent near 97 dollars a barrel. Indonesia's trade surplus nearly vanished in April.
Bank Permata chief economist Josua Pardede said markets are raising Indonesia's risk premium, not just reacting to a strong dollar. The Jakarta Composite Index dropped 4.99% to 5,644 points, a five-year low.
The central bank's response
Bank Indonesia said it was monitoring markets and using its tools to keep foreign exchange liquidity in place. Later in June it raised its policy rate twice, taking it to 5.75%.
For the wider economy, a weak rupiah makes imports more expensive. That includes fuel and some building materials and equipment bought in foreign currency.
An earlier warning
Pressure on the rupiah built up earlier. In April, Reuters reported that BI senior deputy governor Destry Damayanti called stabilising the rupiah the bank's top priority. BI said then it was ready to buy government bonds in the secondary market and to attract inflows through SRBI, its rupiah-denominated certificates.