The Indonesian rupiah traded near a record low of around IDR 18,030 per U.S. dollar on Friday, extending its decline for a fourth consecutive session as a stronger greenback and ongoing uncertainty in the Middle East boosted demand for safe-haven assets. Domestic sentiment also remained weak amid concerns over fiscal discipline and rising government spending commitments, while the prospect of potential credit-rating reviews further weighed on investor confidence.
Official data showed that foreign holdings of Indonesian government bonds fell to their lowest level in nearly 20 years as of June 2, while foreign ownership of domestic equities slipped to multi-year lows, highlighting the retreat of overseas investors from local markets. Indonesia’s foreign exchange reserves declined by USD 2 billion in April to USD 146.2 billion, the lowest in almost two years, reflecting continued central bank intervention to support the currency. For the week, the rupiah is poised for a tenth straight weekly loss, down 0.9%, and is about 7.5% lower year-to-date, making it Asia’s worst-performing currency in 2026.
