Rupiah Weakens on S&P Negative Outlook for Indonesian Bonds

April 17, 2026 | 05:24 pm

TEMPO.CO, Jakarta - The Indonesian rupiah exchange rate weakened on Friday by 50 points, or 0.29 percent, closing at Rp17,189 per U.S. dollar, down from Rp17,139 per U.S. dollar the previous day.

According to Woori Bank analyst Rully Nova, as quoted by Antara, the rupiah's weakening was influenced by Standard & Poor's Global Ratings' (S&P) negative outlook on Indonesia’s bond ratings.

"The rupiah in today's trading was more influenced by domestic pressures related to the negative outlook from the S&P rating agency on government bond ratings due to the government's significant fiscal pressure," he told ANTARA in Jakarta on Friday.

It was previously reported that the rating agency S&P Global Ratings was concerned about Indonesia's debt-servicing ratio.

Minister of Finance Purbaya Yudhi Sadewa stated that S&P inquired in detail about Indonesia's fiscal condition, particularly its ability to maintain a deficit below 3 percent of gross domestic product (GDP).

Purbaya stated that the 2025 State Budget (APBN) deficit in the Central Government Financial Report (LKPP) may decrease after being audited by the Supreme Audit Agency (BPK).

The Ministry of Finance recorded a provisional state budget deficit of 2.92 percent of GDP for 2025. Purbaya projects that the final audit results will show a deficit of 2.8 percent of GDP.

Regarding the 2026 State Budget, the Minister of Finance discussed his party's efforts to improve tax collection, customs, and excise duties. One of these efforts involves organizational restructuring.

"Externally, it actually provides positive sentiment (towards the rupiah), as seen by the strengthening of most regional currencies and the relatively stable dollar index," said Rully.

The Jakarta Interbank Spot Dollar Rate (JISDOR) of Bank Indonesia also weakened today, dropping from Rp17,142 to Rp17,189 per U.S. dollar.

Read: Purbaya: US Investors Favor Portfolio Investments Over FDI

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