The Rupiah Strengthened Due To The Positive Market Response To The RI-US Tariff Negotiations

Currency analyst and Director of Profit Forexindo Berjangka, Ibrahim Assuabi, believes the strengthening of the rupiah exchange rate is influenced by the positive market response to the government's assurance that negotiations regarding the United States' 32 percent reciprocal tariff policy are still ongoing. 

"In fact, communication between the two parties is continuing to achieve a win-win solution," he said in a written statement in Jakarta on Thursday. 

The rupiah exchange rate at the close of trading on Thursday in Jakarta strengthened by 34 points, or 0.21 percent, to Rp16,224 per US dollar, from Rp16,258 per US dollar. 

Bank Indonesia's Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened today to Rp16,220 per US dollar, from Rp16,254 per US dollar previously. 

Indonesia and the United States have agreed to continue tariff negotiations for the next three weeks to ensure the best outcome for both parties. 

Coordinating Minister for Economic Affairs Airlangga Hartarto, who was also appointed as the Indonesian government delegate, met with US Secretary of Trade Howard Lutnick and the Head of the United States Trade Representative (USTR) Jamieson Greer in Washington, D.C., USA. 

The Indonesian delegation was one of the first countries received by the US government to discuss the continuation of the tariff agreement, following US President Donald Trump's announcement to impose a 32 percent tariff on Indonesia on July 7, 2025. 

During the meeting, Airlangga expressed his appreciation for the constructive negotiation process with the US side. 

The negotiations covered issues of tariffs, non-tariff barriers, the digital economy, economic security, and commercial and investment cooperation. 

Indonesia and the US also see significant potential for expanding cooperation in strategic sectors such as critical minerals. 

"Since the 32 percent base tariff was imposed on a number of Indonesian export products following BRICS membership, the government has been actively developing schemes to mitigate its impact, including deregulation options and increased imports from the US. However, to date, there has been no sign of change from Washington," said Ibrahim. 

Regarding global sentiment, most Federal Reserve (Fed) officials reportedly expect an interest rate cut at the next Federal Open Market Committee (FOMC) meeting, citing subsided inflationary pressures and potential economic and labor market weakness. Several other Fed officials do not see the need for a policy change in 2025. 

Tag: Ibrahim Assuabi Positive Market Rupiah