07.07.202604:03:01UTC+00Rupiah Inches Higher After Forex Reserve Data

The Indonesian rupiah traded around IDR 17,980 per US dollar on Tuesday, slightly stronger after briefly weakening to about IDR 18,050 in the previous session. The modest recovery came as the US dollar remained under pressure ahead of the release of the Federal Reserve’s June meeting minutes.

On the domestic front, Indonesia’s foreign exchange reserves inched higher in June after slipping to a near two-year low in May, easing concerns about the country’s external position following a recent warning from Fitch Ratings. At the same time, the government is pushing for further reductions in allocations to President Prabowo’s free meal program to enhance fiscal efficiency, with the House Budget Committee reportedly proposing cuts to the program’s 2027 budget.

Softer global oil prices and the expansion of the biodiesel program are also helping to mitigate external pressures. Even so, overall sentiment remains cautious after weak May trade figures. Investors are now looking to June consumer confidence data and May retail sales for fresh indications of domestic demand.