RRI.CO.ID, Jakarta - The Indonesian Rupiah closed weaker at 17,640 against the US Dollar in today’s trading session, Monday, 18 May 2026. Earlier in the day, the currency dropped sharply before recovering slightly near the close.

The Rupiah was not alone in weakening, as several Asian currencies also lost value against the US Dollar. Thailand’s Baht, the Hong Kong Dollar, the Japanese Yen, and the Korean Won all came under pressure.

However, the Rupiah recorded the biggest decline among major Asian currencies today. The currency fell more than 1% at the start of the week.

Market pressure is still largely driven by rising geopolitical tensions around the world. Investors are becoming more cautious and are moving funds into safer assets such as the US Dollar.

Analysts also believe the Indonesian government may need to review spending programs that may widen the budget deficit. Larger deficits may force the government to issue more debt in the future.

International rating agencies and financial institutions are closely monitoring Indonesia’s state budget management. Deficit spending can support growth, but global uncertainty makes economic expansion more difficult.

Meanwhile, Indonesia’s stock market also weakened during today’s session. The Jakarta Composite Index (IHSG) closed down 1.85% at 6,599.240 after remained in negative territory throughout the day.

The stock index moved between 6,398 and 6,631 during trading hours. A total of 616 stocks declined, while 125 stocks gained and 79 stocks ended unchanged.

The pressure on Indonesian stocks followed broader weakness across Asian markets. The weaker Rupiah also added negative sentiment to the local equity market.

Gold prices remained relatively stable at around $4,538 per troy ounce, or about 2.58 million Rupiah per gram. Traders are still waiting for stronger signals from the US market session.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)