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🇮🇩 Indonesia /Economy & Trade

Rupiah Extends Gains, Trading Around 17,600 per U.S. Dollar

From Republika · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • The rupiah gained 37 points, or 0.21 percent, to close at 17,642 per dollar on Friday, compared with 17,679 in the previous session.
  • Currency analyst Ibrahim Assuaibi linked the gains partly to government efforts to support Indonesia’s middle class and accelerate economic growth.
  • Economists say the government’s 6 percent growth target for 2027 will be difficult to achieve as interest rates rise and geopolitical tensions persist.

The Indonesian rupiah continued to strengthen on Friday, closing at 17,642 per U.S. dollar, according to Bloomberg data cited by Republika. It gained 37 points, or 0.21 percent, from the previous session’s 17,679.

The move came amid several positive signals, including expectations of stronger economic growth next year. Currency and commodities analyst Ibrahim Assuaibi said domestic policies aimed at reviving the middle class were helping support the currency.

The government has spent heavily on assistance for people in need, Ibrahim said, while the middle class has received less support. Falling incomes among middle-class households have become a concern, making faster growth a central part of efforts to improve their position.

Indonesia’s growth has averaged around 5 percent, Ibrahim said, which is not strong enough to drive industrialization or create large numbers of formal jobs. He argued that growth should reach more than 6 to 6.5 percent to attract foreign investment, expand infrastructure and create new employment. Higher incomes could then help produce a new middle class with better earnings.

Economists caution that achieving 6 percent growth in 2027 will not be easy. Rising interest rates could weigh on investment, which will be important for next year’s expansion, while global geopolitical tensions may continue to pose a challenge.

Therefore, to make the creation of formal jobs stronger, economic growth needs to be pushed above 6 to 6.5 percent.

· Ibrahim AssuaibiHe argued that faster growth would support investment, infrastructure and formal employment.
About this summary

Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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