Rupiah Declines as US Fedโ Chair Outlook Shifts,Indonesian Economyโ Shows Growth
Jakarta,November 28,2025 – Theโข Indonesian rupiah weakened against โthe US โคdollar today,falling 0.42%โฃ or 69.3 points โคto reach IDR 16,666 asโ ofโข 13:02 WIB. The โคcurrency’s โฃdepreciation follows โforecasts โขfrom analyst Ibrahim, who cites โคanticipated shifts in US monetary policy and domestic economic indicators โas contributingโฃ factors.
The rupiah’s movement occurs amid growing expectationsโฃ that Kevin Hassett, a close ally of USโ President Donaldโฃ Trumpโฃ and current Director of the โWhite House National Economic Council, is a leading candidate to succeed Jerome Powellโ as the next Federalโค reserve Chair in May 2026. Ibrahim’s research suggests Hassett isโฃ likely to pursue more aggressive interest rate cuts โฃthan โPowell, possibly responding โto โTrump’s calls for โeconomic stimulus โคdespite ongoing concerns about stagnant inflation. Trump โฃhas publicly advocated for “a much bigger โcut inโ interest rates toโค boost the US economy,”โ a position the Fed has largely resisted.
Domestically,โข positive economic sentiment is building,โฃ fueled by government efforts to stimulate growthโ through direct cash โขassistance programs (BLT) and โคaccelerated aid initiatives covering essential goods โขlikeโฃ rice and cooking โคoil. Indonesian Finance Minister Purbayaโข Yudhi sadewa recentlyโ projected fourth-quarter โฃeconomic growth of 5.7%, โexceeding the 5.04% growth recorded in the โthird โquarter ofโ 2025. Despite this โฃoptimism, Ibrahim predicts continued downward pressure โฃon the rupiah in Friday’s trading.
