Rupiah Weakens Amid Fiscal Concerns and Global Sentiment
Executive Summary
Key insights and market outlook
The Indonesian rupiah weakened by 0.13% to Rp16,819 per USD as of January 9, 2026, amid concerns over the country's fiscal condition and global economic sentiment. The fiscal deficit reached 2.92% in 2025, nearing the 3% threshold, which has raised concerns among market participants. BCA's Chief Economist David Sumual attributed the pressure on rupiah to a combination of domestic and global factors.
Deep Dive Analysis
Rupiah Faces Downward Pressure Amid Fiscal Concerns
Currency Movement and Market Data
The Indonesian rupiah depreciated by 0.13% to Rp16,819 per USD on January 9, 2026, according to Bloomberg data. For the week, the currency weakened by 0.55% from Rp16,725 per USD at the end of the previous week. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) decreased by 0.20% to Rp16,834 per USD from Rp16,801 per USD on January 8, 2026.
Economic Analysis and Expert Views
David Sumual, Chief Economist at BCA, analyzed that the pressure on rupiah stems from a combination of domestic and global sentiments. On the domestic front, concerns about the fiscal condition remain paramount among market participants, particularly following the 2025 budget deficit reaching 2.92%, close to the 3% limit.
Market Implications
The weakening rupiah reflects market concerns about Indonesia's fiscal health and its potential impact on the economy. The proximity of the fiscal deficit to the 3% threshold has heightened market sensitivity, potentially leading to continued volatility in the currency market.
Source References
Story Info
Topics Covered
Key Events
Rupiah Depreciation
Fiscal Deficit Concern