Indonesian Rupiah Slides to 17,104 Against US Dollar

April 10, 2026 | 06:02 pm

TEMPO.CO, Jakarta - The exchange rate of the rupiah weakened at the close of trading on Friday, April 10, 2026, to 17,104 per U.S. Dollar, a decline of 0.08 percent from the previous day. Thus, the rupiah has consistently been at the level of 17,000 per U.S. Dollar for a week.

The Director of PT Traze Andalan Futures, Ibrahim Assuabi, predicts that in the upcoming week's trading, the rupiah will fluctuate but weaken again. Ibrahim stated, "In a week, the rupiah was traded in the range of 17,040-17,200 per US Dollar," in a written statement on Friday, April 10, 2026.

The weakening of the rupiah occurred amid the strengthening of the U.S. dollar. According to Ibrahim, the global sentiment affecting the movement of this exchange rate is driven by tensions in the Middle East. A two-week ceasefire between the U.S. and Iran has begun to ease. Meanwhile, Israel signaled the potential for diplomatic openings by stating its readiness to start direct talks with Lebanon as soon as possible.

Disruptions in the Strait of Hormuz also had a significant impact. Although tensions have eased, the passage of ships through the strait is still restricted by Tehran's forces. Iran and the U.S. agreed last Tuesday to maintain the two-week ceasefire mediated by Pakistan. "But battles are still occurring after the announcement," Ibrahim said.

Another factor influencing the market is anticipation for important U.S. consumer inflation data, which is set to be released on Friday. The results of the release can provide further clues about the direction of the American Central Bank's, or the Federal Reserve's, policy. The main U.S. Consumer Price Index (CPI) is expected to rise due to the surge in energy prices caused by the conflict in the Middle East.

Domestically, the continuing weakening of the currency is starting to worry entrepreneurs. The Chairperson of the Indonesian Employers' Association (Apindo), Shinta Kamdani, stated that the business world will directly experience inflation due to increased production costs, also known as cost-push inflation. In addition, companies are finding it increasingly difficult to create cash flow to maintain existing production volume.

The next negative impact is thinning profit margins, which are used to prevent cost-push inflation from disturbing market prices. Both consumers and workers are also at risk. "Everyone has a clear impact on the labor market, namely job freeze, job tightening, or even layoff, depending on how long this condition lasts and can be sustained by the company," Shinta said to Tempo on Friday, April 10, 2026.

Read: Rupiah Hits 17,100: How the Plunge Strains Govt Debt Burden

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