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The Rupiah Strengthened Due To The Market's Positive Response To The RI-US Tariff Negotiations

Currency analyst and Director of Forexindo Berjangka, Ibrahim Assuabi, believes that the strengthening of the rupiah is influenced by the market's positive response to the government's assurance that negotiations regarding the United States' reciprocal tariff policy of 32 percent are ongoing.

"Moreover, communication between both parties continues to be established to achieve a win-win solution," he stated in a written statement in Jakarta on Thursday.

The exchange rate of the rupiah at the close of trading on Thursday in Jakarta strengthened by 34 points or 0.21 percent, reaching Rp16,224 per US dollar, up from Rp16,258 per US dollar previously.

The Jakarta Interbank Spot Dollar Rate (JISDOR) from Bank Indonesia also appreciated today to Rp16,220 per US dollar, compared to Rp16,254 per US dollar earlier.

Indonesia and the United States have agreed to continue tariff negotiations over the next three weeks to ensure the best outcome for both parties.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, who has also been appointed as the Indonesian Government's delegate, held a meeting with US Secretary of Commerce Howard Lutnick and the Chief of the Office of the United States Trade Representative, Jamieson Greer, in Washington D.C., USA.

The Indonesian delegation has become one of the first countries accepted by the US Government to discuss the continuation of tariff agreements, following the announcement by US President Donald Trump to impose a 32 percent tariff on Indonesia on July 7, 2025.

During the meeting, Airlangga expressed appreciation for the constructive negotiation process that has been ongoing with the US side.

The negotiations cover issues such as tariffs, non-tariff barriers, digital economy, economic security, as well as commercial cooperation and investment.

Indonesia and the US also recognize significant potential to expand cooperation in strategic sectors such as critical minerals.

"Since the basic tariff of 32 percent was implemented on several Indonesian export products following membership in BRICS, the government has been actively formulating schemes to mitigate its impact, including options for deregulation and increasing imports from the US. However, to date, there has been no signal of change from Washington," said Ibrahim.

Regarding global sentiment, most Federal Reserve officials are reported to suspect a decrease in interest rates at the next Federal Open Market Committee (FOMC) meeting due to easing inflationary pressures, as well as potential economic and labor market weakening. Some other Fed officials do not see the need for policy changes in 2025.

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Tag: Ibrahim Assuabi JISDOR Rupiah