Rupiah Under Pressure, Nears Rp 18,000 as Indonesian Manufacturing PMI Falters

The Indonesian Rupiah faced significant pressure, nearing the psychologically important Rp 18,000 level against the US Dollar. This weakening trend reflects growing concerns about the health of the Indonesian economy.

“

The Purchasing Managers' Index (PMI) data released by S&P Global shows that Indonesia's PMI was 46.9 in June 2026. This is the sharpest rate of decline in a year, with new orders falling again, causing the largest decrease in output volume since April 2025.

The depreciation coincided with the release of the Purchasing Managers' Index (PMI) by S&P Global. The index showed a contraction in Indonesia's manufacturing sector, falling to 46.9 in June 2026. This marks the sharpest decline in a year, driven by falling new orders and the largest drop in output volume since April 2025.

“

The main cause of the decline in June 2026 is the decrease in demand for Indonesian manufactured goods. New orders fell for the first time in three months and at the fastest pace in a year.

Analysts point to a combination of negative sentiments impacting market confidence. These include high-profile corruption cases, worries about the government's fiscal health following a trade deficit in May, rising inflation, and the delayed decision by MSCI regarding Indonesia's inclusion in its global equity indexes. These factors collectively create a challenging environment for the Rupiah.

“

In general, market participants' confidence in Indonesia faces a severe test after a series of negative sentiments entered the second quarter of 2026.