TEMPO.CO, Jakarta - The rupiah exchange rate in the domestic spot market slipped to Rp17,917 per US dollar at the close of trading on Wednesday, July 22, 2026. Meanwhile, Bank Indonesia's Jakarta Interbank Spot Dollar Rate (JISDOR) closed at Rp17,909 per US dollar.
PT Traze Andalan Futures Director Ibrahim Assuaibi stated that currency movements were influenced, among other factors, by Bank Indonesia's (BI) decision to maintain its benchmark interest rate, or BI-Rate, at 5.75 percent.
"BI is expanding incentive policies alongside several other measures to boost foreign portfolio inflows, reinforce rupiah stability, accelerate money and foreign exchange market deepening, and enhance liquidity," he said in a written statement on Wednesday, July 22, 2026.
Another contributing factor is the State Budget (APBN), which posted a deficit of Rp196.5 trillion at the end of June 2026. Meanwhile, state revenue was recorded at Rp1,459.54 trillion, or 46.3 percent of the target.
State expenditure, on the other hand, reached Rp3,842.7 trillion, or 43.1 percent of the target. This indicates that state spending continues to outpace revenue, according to Ibrahim.
On the global front, exchange rate dynamics are being driven by escalating military tensions between the United States and Iran. According to Ibrahim, these developing conflict dynamics heighten concerns regarding exports from one of the world's major crude oil producers.
"Expectations that the Fed might increase the pace of interest rate hikes in 2026 have surged, driven by high oil prices as supply disruptions in the Gulf ignite inflation fears and fuel speculation about higher-for-longer rates," Ibrahim said.
Read: Bank Indonesia Leaves Benchmark Rate Unchanged at 5.75%
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