August 29, 2026 | 02:08 pm
TEMPO.CO, Jakarta - The Indonesian rupiah is expected to trade at around Rp17,600 to Rp17,900 per U.S. dollar next week, with domestic and international factors likely to influence the currency’s performance, said Ibrahim Assuaibi, director of PT Traze Andalan Futures.
One of the key domestic factors, Ibrahim said, is market participants’ wait for inflation data due to be released next week.
“Market participants tend to refrain from taking aggressive positions before seeing the official inflation figure,” he said in a written statement on Friday, August 28, 2026.
He explained that inflation data is a crucial indicator for central banks when determining the direction of monetary policy and interest rates. Controlled inflation could provide room for policy easing, while elevated inflation could force interest rates to remain tight.
Ibrahim also said the release of July trade data by Statistics Indonesia (BPS) could raise concerns over food prices, as the data reflects supply, demand, and food distribution costs at both the global and domestic levels.
A surge in food imports, he said, could indicate that domestic supplies are declining or that Indonesia is becoming more dependent on supplies from other countries.
“A weakening rupiah in the trade report also makes food imports more expensive,” he said.
Global Factors to Watch
On the external front, geopolitical tensions between Iran and the United States continue to affect global trade, Ibrahim said.
Markets are also taking a cautious approach ahead of Kevin Warsh’s first speech as the new chair of the U.S. Federal Reserve.
“[The market is] looking for signals on inflation and clues about the direction of U.S. interest rates,” Ibrahim said.
The rupiah strengthened at the close of trading on Friday, August 28, 2026, to Rp17,693 per U.S. dollar, compared with Rp17,744 at the previous session’s close.
The exchange rate was broadly in line with Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR), which stood at around Rp17,703 to Rp17,762 per U.S. dollar between August 24 and 27, 2026.
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