Jakarta – The exchange rate of the US dollar continues to strengthen against the rupiah. The US currency is currently hovering around Rp 15,900 and nearly reached Rp 16,000 yesterday.
According to data from RTI, on Wednesday (December 4, 2024), the US dollar stood at Rp 15,954 at 09:40 WIB. The US dollar strengthened by 25 points or 0.16%.
Currency market observer Ariston Tjendra stated that the depreciation of the rupiah against the US dollar is due to several factors, including the protectionist policies of US President-elect Donald Trump, such as increasing import tariffs.
“This could trigger global economic turbulence, causing markets to seek safety in the US dollar. Additionally, rising tensions in the Middle East and Ukraine also push the market to seek security in US dollar assets,” Ariston said on Wednesday (December 4, 2024).
Ariston further mentioned that the prospects of a US interest rate cut are also a concern. Market participants predict that the rate cut will likely not be as aggressive, as recent US economic data has shown improvement.
The strengthening of the US dollar against the rupiah, according to Ariston, could affect production. This is because the cost of buying foreign goods priced in US dollars becomes more expensive.
“Industries that rely on imported raw materials will struggle, including the agricultural and livestock sectors,” he said.
Moreover, he mentioned that investor confidence could be lost. He believes that debt in US dollars will be difficult to repay, especially for companies earning in rupiah. In addition, the government’s debt could also increase.
Similarly, currency market observer Ibrahim Assuaibi noted that global geopolitical conditions have contributed to the weakening of the rupiah.
“This is the beginning of the strengthening of the dollar, which has caused currencies, including the rupiah, to continue weakening. In fact, in banking transactions, the rupiah exchange rate has already reached Rp 16,000,” he said.
Ibrahim added that the strengthening of the US dollar would have a significant impact on Indonesia’s economy, particularly on inflation, which is expected to rise.
“The strengthening of the dollar will make imports more expensive, especially in technology, automotive, fertilizers, and imported commodities like soybeans. This will contribute to inflation in Indonesia,” he said.
