USD/IDR: Rupiah could remain under pressure – ING

In 2023, the Indonesian Rupiah came under pressure, especially in the second half of the year. Economists at ING analyze IDR outlook.

Exports likely to face another challenging year in 2024

Exports are likely to face another challenging year in 2024 with most major trading partners facing economic headwinds of their own. This could translate to sustained pressure on IDR well into 2024.  

With BI still maintaining a relatively tight interest rate differential over the Fed (75 bps) the IDR could remain under pressure until the differential widens due to additional BI rate hikes or potential rate cuts from the Fed sometime in 2024.