Rupiah Weakens to 18,129 per US Dollar, JCI Drops 4%

The Indonesian rupiah experienced a notable weakening on Monday morning, June 8, 2026, opening at Rp18,129 against the US dollar. This marks a decline from its closing rate of Rp18,036 on Friday, June 5.

Accompanying the currency's slide, the Jakarta Composite Index (JCI) also opened in negative territory, dropping 4% by 9:16 a.m. Western Indonesian Time and continuing its downward trend, down 2.8% as of 10:05 a.m. WIB.

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The weakening of the rupiah is influenced by global sentiment such as the Middle East conflict and the policy direction of the United States central bank, The Fed. Meanwhile, from the domestic side, the increasing need for dollars is predicted to affect Indonesia's current account position.

Ibrahim Assuaibi, Director of PT Traze Andalan Futures, attributes the rupiah's depreciation to a combination of global and domestic factors. International influences include the ongoing Middle East conflict and the policy direction of the US Federal Reserve. Domestically, an increasing demand for dollars is predicted to impact Indonesia's current account. Furthermore, rising inflation in May, a narrowing trade balance surplus, and a debt outlook downgrade for Danantara Investment Management by Moody's are contributing to investor concerns.

Assuaibi anticipates significant foreign capital inflow into the stock market due to the rupiah's weakening. However, he also notes investor apprehension regarding President Prabowo's extensive agenda, particularly the "free nutritious meal" project and potential increases in fuel subsidies. Analysts predict the rupiah could weaken further, potentially reaching Rp19,000 per US dollar by the end of June, while Bank Indonesia and the Ministry of Finance are preparing strategies to stabilize the exchange rate.

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The weakening of the rupiah amidst investor concerns about the extensive agenda of President Prabowo, especially regarding the free nutritious meal project of the Red and White Village Cooperative, and most importantly the increase in fuel subsidies.