Rupiah Is the Worst Performing Currency in ASEAN, Here's Why
In the past one year, the Indonesian rupiah (IDR) has been the worst-performing currency among major ASEAN economies, depreciating by -6.3% against USD.
Even though the weakness in IDR is not entirely unique, particularly after the US trade war policy in Apr-25, several domestic issues have driven investors to sell the rupiah and move toward more stable currencies.
These include: 1). Sluggish growth with limited catalysts, 2). Unproductive policies combined with a high debt burden, and 3). An uncertain political landscape, which are eroding confidence and stability of the rupiah.
Consequently, Bank Indonesia (BI) has been defending the currency throughout 2025, as reflected in the sharp drop in Indonesia’s foreign exchange reserves, down from $156 billion in Dec-24 to $149 billion in Sep-25.
Nevertheless, IDR is now trading around 16,600 against USD, and only 2.4% away from the “critical” level of 17,000. If that threshold is broken sustainably, it could trigger further depreciation and weigh on economic growth.
