Indonesian Rupiah Depreciates Amid Global Uncertainties

Currency Movement Analysis

The Indonesian rupiah experienced a 0.55% depreciation against the US dollar over the past week, closing at Rp16,819 per USD on January 9, 2026. This movement was consistent with other Asian currencies that also weakened against the USD during the same period. The Jakarta Interbank Spot Dollar Rate (Jisdor) also depreciated by 0.20% to Rp16,834 per USD from Rp16,801 per USD on the previous trading day ¹

Economic Factors Driving Currency Movement

Josua Pardede, Chief Economist at Permata Bank, explained that the rupiah's depreciation was primarily driven by the strengthening US dollar. The US currency gained strength following positive US labor data, which has heightened expectations of continued economic stability in the United States. Additionally, investor caution ahead of key US employment reports contributed to the risk aversion in emerging markets, including Indonesia.

Market Implications

The weakening rupiah may have implications for Indonesia's import-dependent economy, particularly in terms of increased import costs. However, a competitive rupiah could benefit exporters. The currency's movement will likely continue to be influenced by global economic developments, particularly US monetary policy and labor market data.