Rupiah Fluctuates Tend To Be Lessive In The Range Of Rp. 16,840 - Rp. 16,900 Per US Dollar

Dollars and rupiah (photo: Antara)

JAKARTA - The rupiah exchange rate in trading Tuesday, April 29 is expected to weaken against the United States (US) dollar.

To note, citing Bloomberg, on Monday, April 28, the rupiah spot exchange rate closed down 0.140 percent to the level of Rp. 16,856 per US dollar. Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed lower by 0.19 percent to a price level of Rp. 16,862 per US dollar.

Currency observer Ibrahim Assuaibi said the market had been rocked by conflicting signals from US President Donald Trump and Beijing regarding what progress was being made to defuse trade wars that threatened to weaken global growth.

"In a recent comment from Washington, US Treasury Secretary Scott Bessent did not support Trump's statement that negotiations with China were ongoing. Previously, Beijing denied any ongoing talks," he said in a statement, quoted Tuesday, April 29.

In addition, Ibrahim said that many participants at the International Monetary Fund Semi-Season Meeting (IMF) and the World Bank said the Trump administration was still in conflict in its demands from trading partners who were subject to a large tariff.

"Investors are also observing nuclear negotiations between Iran and the United States in Oman that continue this week," he said.

Meanwhile, from within the country, Ibrahim said that market participants are pessimistic about achieving 8 percent economic growth in 2029, which President Prabowo Subianto is targeting, to become increasingly difficult to achieve, if the Indonesian economy grows below 5 percent this year, in accordance with the projections of international institutions.

Ibrahim explained that because Indonesia must be able to increase the growth rate consistently every year, with the average annual growth reaching around 6.76 percent during the period 2026 to 2029 to achieve this target.

"So the government needs to accelerate its planned investment, expand exports to non-traditional markets, and accelerate the transformation of the manufacturing and digital sectors," he said.

In addition, Ibrahim said that Indonesia must maintain macroeconomic stability by strengthening fiscal discipline, managing debt carefully, and expanding its tax base in order to be able to finance priority programs in a sustainable manner.

"If this happens, economic growth of 4.7 percent in 2025 and 2026 will be the lowest after 2021. At that time, the country's economic growth grew 3.69 percent cumulatively," he said.

Previously, the International Monetary Fund (IMF) and the World Bank (WB) compactly cut Indonesia's economic growth projection to 4.7 percent in 2025 in the latest or lower reports compared to the 5.1 percent projection submitted in the previous report.

Ibrahim estimates that the rupiah will fluctuate but close lower in trading on Tuesday, April 29, 2025, in the price range of IDR 16,840 - IDR 16,900 per US dollar.