RRI.CO.ID, Jakarta – The Indonesian Rupiah strengthened on Thursday morning, February 26, 2026, opening with a gain of 56 points, or 0.33 percent, to IDR 16,744 per US dollar, up from its previous position of IDR 16,800.

Market analysts linked the uptick to growing uncertainty surrounding the US dollar following President Donald Trump’s reaffirmation of his aggressive trade policies.

Although tariffs often bolster the greenback, the current market reaction indicates investor caution as they weigh the long-term unpredictability of US trade direction and its impact on the global economy.

During his address to the US Congress, President Trump signaled no intention of easing trade restrictions. He reiterated his belief that foreign partners would comply with existing agreements and suggested that tariffs could eventually serve as a substitute for federal income tax.

“This strengthening is closely related to Trump’s commitment to maintain tariff policies, which increases uncertainty regarding the future direction of US trade policy and dampens demand for the US dollar,” said Josua Pardede, Chief Economist at Permata Bank, in Jakarta on Thursday, as quoted by Antara.

The White House is reportedly considering raising global tariffs from 10 percent to 15 percent, following a Supreme Court decision that invalidated Trump’s reciprocal tariff measures. This legal and political dispute in Washington has prompted some investors to reallocate assets away from dollar-denominated holdings.

The Rupiah’s resilience is also supported by positive domestic sentiment. Bank Indonesia recently reported that USD 1.6 billion in foreign capital has entered the country, providing a buffer for the currency.

Based on current geopolitical and economic factors, the Rupiah is projected to fluctuate between IDR 16,700 and IDR 16,800 per US dollar throughout the day. ***