KBRN, Jakarta: The Indonesian Rupiah edged up against the US Dollar during Tuesday morning's opening session, gaining 15 points or approximately 0.09 percent to reach the IDR 16,773 level. 

Despite this modest relief, analysts warn that the currency remains vulnerable as internal economic policies and natural disasters continue to weigh on investor sentiment.

Ariston Tjendra, President Director of PT Doo Financial Futures, noted that the Rupiah’s upward momentum is being checked by the prospect of a looser monetary stance from Bank Indonesia (BI). 

Additionally, a surge in government stimulus spending at the end of the year has increased market liquidity, which historically exerts downward pressure on the exchange rate.

"The rupiah is still overshadowed by the prospect of Bank Indonesia's loose monetary policy and government stimulus, which is putting downward pressure on the rupiah exchange rate against the US dollar," Ariston explained in Jakarta on Tuesday, December 30, 2025, as quoted by Antara.

Adding to the fiscal concerns, external sentiment has been dampened by recent hydrometeorological disasters across Sumatra and several other regions. These environmental crises are viewed by the market as a direct threat to national economic growth targets, further chilling appetite for the Rupiah. 

"Natural disasters in Sumatra and other regions in Indonesia have also negatively impacted the rupiah, as they have depressed Indonesia's economic growth," Ariston added.

This morning's slight recovery follows a difficult start to the week. On Monday, the Rupiah closed down 43 points at IDR 16,788. Similarly, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (Jisdor) set the reference rate at IDR 16,788. 

As the year draws to a close, the market remains highly sensitive to the balance between government-driven growth initiatives and the resulting currency volatility. ***