Rupiah Declines as US Fed Chair Outlook Shifts,Indonesian Economy Shows Growth
Jakarta,November 28,2025 – The Indonesian rupiah weakened against the US dollar today,falling 0.42% or 69.3 points to reach IDR 16,666 as of 13:02 WIB. The currency’s depreciation follows forecasts from analyst Ibrahim, who cites anticipated shifts in US monetary policy and domestic economic indicators as contributing factors.
The rupiah’s movement occurs amid growing expectations that Kevin Hassett, a close ally of US President Donald Trump and current Director of the White House National Economic Council, is a leading candidate to succeed Jerome Powell as the next Federal reserve Chair in May 2026. Ibrahim’s research suggests Hassett is likely to pursue more aggressive interest rate cuts than Powell, possibly responding to Trump’s calls for economic stimulus despite ongoing concerns about stagnant inflation. Trump has publicly advocated for “a much bigger cut in interest rates to boost the US economy,” a position the Fed has largely resisted.
Domestically, positive economic sentiment is building, fueled by government efforts to stimulate growth through direct cash assistance programs (BLT) and accelerated aid initiatives covering essential goods like rice and cooking oil. Indonesian Finance Minister Purbaya Yudhi sadewa recently projected fourth-quarter economic growth of 5.7%, exceeding the 5.04% growth recorded in the third quarter of 2025. Despite this optimism, Ibrahim predicts continued downward pressure on the rupiah in Friday’s trading.
