Market Watches US Tariff Policy, Rupiah Expected to Weaken
JAKARTA - The rupiah exchange rate on Friday, February 27, 2026 is expected to weaken against the US dollar.
To note, quoting Bloomberg, on Thursday, February 26, 2026, the spot rupiah exchange rate closed up 0.24 percent to Rp16,754 per US dollar.
Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of the Bank Indonesia (BI) closed up 0.32 percent to a price level of Rp16,758 per US dollar.
Money market observer Ibrahim Assuaibi explained that market participants are looking at the impact of the latest US tariff policy following the US Supreme Court's decision to change the legal framework for a number of trade measures.
"The introduction of new global import duties of up to 15 percent has added uncertainty to the outlook for global trade," he said in a statement, quoted on Friday, February 27.
In addition, he added that expectations of interest rate cuts by the Federal Reserve (The Fed) in the near future are beginning to subside. This is in line with the statements of US central bank officials who are still concerned about inflationary pressures.
"Chicago Fed President Austin Goolsbee on Tuesday said he was cautious about cutting rates without clear evidence that inflation was sustainably returning to the 2 percent target," he said.
Meanwhile, from within the country, Ibrahim said the market responded positively to the decision of the United States Supreme Court to cancel part of US President Donald Trump's tariff policy which was immediately followed up by the Indonesian Government.
"President Prabowo Subianto asked his staff to study all potential risks after the decision, especially regarding the implementation of the Indonesia-US trade agreement," he explained.
He added that the government emphasized that despite the change in tariff policies from the US, the implementation of the Indonesia-US bilateral agreement would still run according to the agreed mechanism.
The temporary tariff policy of 10 percent for 150 days is also considered better than the previous scheme, and there will be a difference in treatment between countries that have signed agreements and those that have not.
Ibrahim said that in the future, the government would continue to prioritize diplomacy and negotiations adaptively by prioritizing national interests.
"The government ensures that the implementation of trade agreements continues to provide concrete benefits for economic stability and national competitiveness in the midst of global dynamics, including changes in the direction of Trump's tariff policy," he said.
Ibrahim predicted that the rupiah would fluctuate but closed weaker on Friday, February 27, 2026 in the price range of IDR 16,750 - IDR 16,780 per US dollar.