Rupiah Briefly Hits Rp17,217 per USD as Global Pressures Weigh on Market Stability

Jakarta, April 7, 2025 — The Indonesian Rupiah came under significant pressure at the start of the week, briefly reaching a historic low. According to Bloomberg data, the currency touched Rp17,217 per US dollar at 9:16 AM WIB on Monday (or 10:16 PM on Sunday in New York), marking its weakest level on record.

This surpassed the previous low seen during the 1998 Asian financial crisis, when the Rupiah had fallen to around Rp16,800 per dollar.

Although the depreciation lasted for only a minute, it highlighted the increasing market uncertainty driven by global headwinds. The Rupiah then rebounded slightly to Rp16,927 by 10:01 AM, and further strengthened to Rp16,739 by 10:58 AM, according to Investing.com—representing a 1.1% intraday gain in the spot market.

Risk-Off Sentiment Fuels Pressure

Currency market analyst Lukman Leong explained that the Rupiah’s sharp decline was largely due to the intensifying risk-off sentiment affecting global financial markets, particularly equities and emerging market currencies.

“This risk-off mood was triggered by a statement from the US Secretary of Commerce confirming that tariffs on China would not be postponed. In addition, former President Trump said he would only agree to a trade deal if the US trade deficit with China could be resolved,” Leong told IDX Channel.

Not a Result of Domestic Policy

Meanwhile, Hirofumi Suzuki, Chief FX Strategist at Sumitomo Mitsui Banking Corporation (SMBC), emphasized that the weakening of the Rupiah was not due to Indonesia’s domestic policies.

“This is clearly a result of external pressures. There is no need for panic,” he stated in an interview with CNBC Indonesia.

Bank Indonesia’s Role in Maintaining Stability

Bank Indonesia is expected to continue intervening in the foreign exchange market to help stabilize the currency. The central bank’s priority remains to ensure that the Rupiah stays below or not far above the Rp17,000 per dollar mark.

In addition to direct market interventions, Bank Indonesia is also likely to adjust its monetary policy and strengthen coordination with fiscal authorities to help mitigate volatility and maintain investor confidence.

Looking Ahead

Going forward, market players will closely monitor geopolitical developments, the direction of US Federal Reserve policy, and concrete measures by the Indonesian government to preserve macroeconomic stability. The strength and stability of the Rupiah will largely depend on the synergy between monetary and fiscal policy, as well as the country’s ability to respond to rapidly evolving global dynamics.