China's Rejection Of US Boeing Aircraft Ships Makes Rupiah Weaken

JAKARTA - Currency observer and Profit Director of Forexindo Berjangka Ibrahim Assuabi assessed that the weakening of the rupiah exchange rate was influenced by China's rejection of the delivery of Boeing planes from the United States (US).

China has ordered its airline not to accept further Boeing jet shipments in response to the US's decision to impose a rate of 145 percent on Chinese goods," he said.

Investors are said to be struggling to find catalysts to encourage recovery are more meaningful considering that global economic growth is widely expected to slow down as US tariff policies towards various countries, especially China, which rates are imposed at 145 percent in various sectors.

Trump, who has raised tariffs on Chinese goods to a very high level, said Ibrahim, has pushed China to impose retaliatory duties on US imports in an increasingly intensive trade war between the world's two largest economies.

This situation is feared that the market will cause a global recession.

Seeing domestic sentiment, Indonesia's economic growth in the first quarter of 2025 is predicted to slow down to a range of 4.9-5 percent. This projection slowed down from economic growth in the fourth quarter of 2024 which reached 5.02 percent.

The challenges of structural reform and the effectiveness of government spending, the need to increase productivity in the real sector, the effectiveness of fiscal and monetary policy, and the urgency of strengthening domestic economic fundamentals are considered to be an obstacle to the pace of the economy.

The rupiah exchange rate at the close of trading today in Jakarta weakened by 10 points or 0.06 percent to Rp16,837 per US dollar from the previous Rp16,827 per US dollar.

The Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia today also weakened to the level of Rp. 16,845 per US dollar from the previous Rp. 16,815 per US dollar.