JAKARTA - The rupiah exchange rate in trading Thursday, June 26 is expected to move higher against the United States (US) dollar.
To note, citing Bloomberg, on Wednesday, June 25, the rupiah spot exchange rate was closed up 0.33 percent to the level of IDR 16,300 per US dollar.
Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed up 0.48 percent to a price level of IDR 16,292 per US dollar.
Currency observer Ibrahim Assuaibi said investors were watching Israeli-Iran ceasefire talks, US President Donald Trump announced a ceasefire would be carried out in stages between Israel and Iran, as well as calling on both sides to enforce the agreement.
"Skepticism remains about the sustainability of the ceasefire, as Trump quickly condemned the two countries for violating the deal immediately after its declaration," he said in a statement, quoted Thursday, June 26.
Even so, he said that the announcement had raised hopes that the 12-day conflict marked by the deadly airstrike would eventually end.
In addition, Federal Reserve Chairman Jerome Powell warned that President Donald Trump's higher tariff policy could start driving inflation this summer and that period would be key to US central bank considerations in cutting interest rates.
Meanwhile, from within the country, Ibrahim said that the World Bank (World Bank) reminded that the Indonesian economy is vulnerable to global uncertainty, in the midst of geopolitical heating conditions like today, it is very risky to experience further economic downturn.
The World Bank estimates that Indonesia's economy will only grow 4.7 percent in 2025 and at the level of 4.8 percent in 2026.
This estimate continues the decline in Indonesia's economy, which in the first quarter of 2025 has left the 5 percent level, which is only 4.87 percent.
According to Ibrahim, the global economic pressure that occurs hampers the prospects for job creation and reduces efforts to overcome extreme poverty as trade performance worsens and foreign investment becomes weaker.
"At the same time, the flow of capital becomes unstable so that in general there is pressure on the entire macro economy in every country," he said.
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Ibrahim said that Indonesia's economic vulnerability could be responded to with the consistency of the government in carrying out structural reforms.
He added that the structural reforms include deregulation, improving the business climate, increasing private investment and strengthening the quality of human resources, which aim to increase economic capacity and create more better jobs and provide benefits for all Indonesian people.
Ibrahim estimates that the rupiah will fluctuate but close higher in trading on Thursday, June 26, 2025 in the price range of IDR 16,250 - IDR 16,300 per US dollar.
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