Salsabilla Azzahra Octavia, Jakarta – Bank Indonesia (BI) noted that the rupiah has weakened against the US dollar recently. Previously, BI revealed that the rupiah closed at Rp16,575 per US dollar on Wednesday, March 26, 2025. Meanwhile, on Thursday's opening, March 27, 2025, the rupiah weakened again to Rp16,590 per US dollar.

Most recently, the rupiah weakened by 59 points or 0.36 percent against the US dollar on Thursday, April 3, 2025. On the trading opening on Thursday morning in Jakarta, the rupiah's exchange rate fell to Rp16,772 per US dollar according to Antara. Previously, the rupiah was at Rp16,713 per US dollar.

Head of the Communication Department of Bank Indonesia, Ramdan Denny Prakoso, revealed that the yield of 10-year Government Securities (SBN) had decreased from 7.13 percent on Wednesday, March 26, 2025, to 7.09 percent on Thursday, March 27, 2025.

"On the other hand, the US dollar index (DXY) strengthened to the level of 104.55, and the yield of US Treasury (UST) Note 10 years rose to 4.352 percent," said Ramdan in an official statement quoted on Saturday, March 29, 2025.

Danantara and Trump's tariffs cause rupiah's decline

Currency observer Ibrahim Assuabi said that the sentiments affecting the movement of the rupiah come from both domestic and global aspects. Domestically, the value of the rupiah is influenced by the formation of Danantara and President Prabowo's statement that stocks are a form of gambling, or the decline of the IHSG has no connection to the lower class society.

Danantara and Prabowo's statements have investors worried and frustrated, causing a significant outflow of foreign funds from the Indonesian capital market.

"On the other hand, the formation of Danantara through the management yesterday made foreign funds withdraw again, because they do not want the government to intervene in the capital market. They see that the government will intervene, and even the Criminal Investigation Department (Bareskrim) made a statement that they will oversee the capital market," he said.

In addition, there are concerns about the economy amid increasing international trade tensions, especially from the imposition of tariffs on cars set by the President of the United States, Donald Trump.

The import tariff policy was officially announced on Wednesday, April 2, 2025. The policy is called reciprocal tariffs. America will impose a minimum base tariff of 10 percent for all imported goods, while some countries will be subject to special, higher reciprocal tariffs.

Indonesia ranks eighth on the list of countries affected by the increase in U.S. tariffs, with a 32 percent.

Furthermore, the cautious approach of the U.S. Central Bank or the Federal Reserve in cutting interest rates may have prevented further bearish or pessimistic market sentiment. Investors are also keeping an eye on talks to end the war in Ukraine. U.S. and Russian officials ended a day-long discussion on March 24, 2025, which focused on a narrow proposal for a ceasefire at sea between Kyiv and Moscow.

– Dinda Shabrina and Ilona Estherina contributed to the writing of this article.

Source: https://en.tempo.co/read/1993395/rupiah-weakens-to-rp16772-per-us-dollar-whats-driving-the-declin