Escalation of Middle East Conflict Increases, Rupiah Potentially Weakens

JAKARTA - The rupiah exchange rate in Monday, March 2, 2026 trading is expected to weaken against the US dollar.

To note, quoting Bloomberg, on Friday, February 27, the spot rupiah exchange rate closed down 0.17 percent to Rp16,787 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of the Bank Indonesia (BI) closed down 0.12 percent to a price level of Rp16,779 per US dollar.

Doo Financial Futures analyst Lukman Leong said the rupiah exchange rate is expected to weaken against the US dollar as risk-off sentiment increases due to the escalation of the conflict in the Middle East.

"The rupiah is expected to weaken against the US dollar amid risk-off sentiment from the escalation of the war in the Middle East," he told VOI, Monday, March 2.

However, he added that Bank Indonesia is expected to intervene to maintain the stability of the rupiah.

In addition, Lukman said a number of important Indonesian economic data are also scheduled to be released today which can affect market movements.

"However, BI is expected to intervene. Several important Indonesian economic data will also be released today," he said.

Lukman estimates that the movement of the rupiah on Monday, March 2, 2026 will be in the range of Rp16,750-Rp16,900 per US dollar.