Rupiah Weakens Against Dollar; Islamic Economist: Price Adjustments Allowed, If Not Exploitative

The Indonesian Rupiah (IDR) experienced a weakening trend against the US Dollar (USD) on Friday, June 5, 2026, opening at Rp 18,064 per dollar. This depreciation is seen as a form of inflation beyond the control of domestic economic actors.

Irfan Syauqi Beik, an Islamic Economics observer from IPB University, described the phenomenon as "involuntary inflation," triggered by external factors. He stated that the strengthening dollar automatically increases production costs for industries reliant on imported raw materials, making price hikes difficult to avoid. "When the US dollar exchange rate strengthens against the rupiah, our rupiah depreciates. Automatically, for industries whose inputs or raw materials come from imports, they have no choice but to raise prices," Irfan explained.

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When the US dollar exchange rate strengthens against the rupiah, our rupiah depreciates. Automatically, for industries whose inputs or raw materials come from imports, they have no choice but to raise prices.

Despite the initial weakening, the rupiah showed some resilience. By midday, it was trading around Rp 18,035 per dollar. By the end of the trading day, the Indonesian currency managed to strengthen by 13 points, closing at Rp 18,036 per dollar compared to the previous day's closing rate of Rp 18,049 per dollar. This fluctuation highlights the dynamic nature of currency markets influenced by global economic forces.

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We also have to ensure that they do not suffer losses.