Minister Airlangga: Rupiah Decline Common in Hajj Season

TEMPO.CO, Jakarta - Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto addressed the recent depreciation of the rupiah against the US dollar, saying the movement remains in line with broader global trends affecting many economies.

On Tuesday morning, May 5, 2026, the rupiah weakened by 11 points, or 0.07 percent, to 17,405 per US dollar, from its previous close of 17,394.

Airlangga said such depreciation is not unique to Indonesia and is commonly observed across countries, particularly during the annual pilgrimage season, when demand for US dollars typically rises.

“Various countries are experiencing depreciation against the US dollar, and during the pilgrimage period there is usually increased demand for dollars,” he said at a press conference on Indonesia’s first-quarter 2026 economic growth at his office on Tuesday.

He added that seasonal factors in the second quarter also contribute to the pressure, as the period often coincides with corporate dividend payments, which tend to drive up demand for foreign exchange.

The government, Airlangga said, will continue to closely monitor currency movements, including by benchmarking against developments in other economies.

To mitigate volatility, the government has prepared a range of anticipatory measures in coordination with Bank Indonesia, including expanding currency swap arrangements with China as well as with Japan and South Korea.

He also noted efforts to diversify debt financing and securities issuance into non-dollar currencies, such as the Chinese yuan and Japanese yen, to reduce reliance on the US dollar and ease exchange rate pressures.

Separately, Bank Indonesia’s Head of the Monetary and Asset Management Department, Erwin Gunawan Hutapea, said the rupiah’s movement since the onset of tensions in the Middle East remains broadly in line with other emerging market currencies.

“Bank Indonesia will continue to be present in the market to ensure that market mechanisms function properly,” Erwin said in a written statement on May 5.

He noted that several emerging market currencies have come under pressure during the period, with the Philippine peso weakening by 6.58 percent, the Thai baht by 5.04 percent, and the Indian rupee by 4.32 percent. The Chilean peso fell 4.24 percent, the rupiah 3.65 percent, and the South Korean won 2.29 percent.

To maintain exchange rate stability, Bank Indonesia has stepped up market interventions through non-deliverable forward (NDF) transactions in offshore markets, spot market operations, and domestic non-deliverable forward (DNDF) transactions.

In addition, the central bank has been purchasing government securities in the secondary market. These measures, authorities said, are being carried out consistently and prudently to maintain rupiah stability amid ongoing global pressures.

Read: Will BI Slash Monthly Dollar Purchase Limit to $25,000?

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