The Indonesian rupiah strengthened by 57 points, or 0.33 percent, to close at Rp17,229 per US dollar on Friday, from Rp17,286 in the previous session.

Currency and commodity analyst Ibrahim Assuaibi said the rupiahs gain was supported by government confidence in the resilience of the state budget (APBN) amid rising pressure from Middle East tensions, which have pushed up global energy prices.

When crude oil prices remain highly volatile and exceed the 2026 state budgets macroeconomic assumption of above US$100 per barrel, the government still has room to contain price increases, particularly for subsidized fuel, without tapping excess budget reserves, Ibrahim said in a written statement in Jakarta.

He noted that the governments excess budget balance (SAL), totaling Rp423 trillion, has not yet been used to absorb subsidy pressures stemming from higher energy prices.

SAL serves as a last-resort fiscal buffer if government spending exceeds limits needed to keep the deficit below 3 percent of gross domestic product (GDP).

With ongoing efforts to improve spending efficiency and reallocate funds toward priority sectors, the government is expected to maintain the 2026 budget deficit within the legal cap of below 3 percent of GDP.

Bank Indonesia has also reiterated its commitment to stabilizing the rupiah through a full mix of monetary policy tools. Interventions have been carried out simultaneously in offshore non-deliverable forward (NDF) markets, the spot market, and the domestic non-deliverable forward (DNDF) market.

In addition, the central bank is expanding its foreign exchange operations, including spot and swap transactions involving offshore yuan, to strengthen the rupiah and promote the use of local currencies in transactions.

Meanwhile, Bank Indonesias Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened to Rp17,278 per US dollar, compared with Rp17,308 previously.

Source: tempo.co

Apr 25th, 2026