Jakarta (Antara) – Permata Economist head of bank Josua Pardede said that the weakening of the exchange rate (exchange rate) of the Rupiah was influenced by the possibility that the United States (US) participated in the conflict between Iran -Resrael.
“The depreciation of the Rupiah exchange rate then continues after concern with regard to the possibility that the US participated in the Israeli Iran conflict, which in turn encourages geopolitical uncertainty to increase in the Middle East,” he said Antara in Jakarta on Thursday.
According to the Wall Street Journal report, US President Donald Trump said high American officials that he had agreed to plans to attack Iran, but had not given a definitive order about its implementation.
With reference to anonymous sources, the report said that Trump was still waiting for Iran’s steps to stop his nuclear program.
He looks at the underground enrichment facility of Iran, but to attack him, the most powerful weapon is needed.
Trump gave a signal that there would be an important decision in the near future, possibly next week, but he also opened the possibility of the decision that was issued faster.
He also told Israeli leader Benjamin Netanyahu to “continue to launch” attacks on Iran, but has not yet given any indication of the US involvement in the conflict.
On the other hand, the weakened Rupia was also due to the decision of the Federal Reserve (the FED) in the Federal Open Market Committee (FOMC) to maintain interest rates.
With reference to Anadolu Agency, Fed maintains interest rates in the range of 4.25-4.5 percent according to market expectations. This decision was made in an attempt to achieve maximum employment and inflation in the long term at a level of 2 percent.
The FED warned that the uncertainty about economic prospects had been reduced, but remained high.
The committee would continue to reduce the ownership of the Treasury and Institutional debt Perms, as well as securities with the institutional mortgage.
“On Friday (12/20/2025) the Rupiah is expected to move sideways In the middle of the American holiday. We estimate the Rupiah to move in the range of RP16,350-16.475 per US dollar, “said Josua.
The Rupiah change race at the closure of Thursday trade in Jakarta fell by 94 points or 0.57 percent to RP16.406 per US dollar of the previous RP16.313 per US dollar.
The Jakarta Interbank Spot Dollar Rate (Jisdor) rate from Bank Indonesia has also weakened today at the level of RP16.378 per US dollar of the previous RP16.319 per US dollar.
Also read: Rupiah weakened because the FED decision is resistant to interest rates
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Reporter: M Baqir Idrus Alatas
Editor: Kelik Dewanto
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