January 19, 2026 | 11:20 am
TEMPO.CO, Jakarta - Doo Financial Futures currency analyst Lukman Leong predicts the rupiah could see limited gain due to the impact of potential new US tariffs on countries opposing Washington's desire to annex Greenland.
"The rupiah is expected to fluctuate against the US dollar with limited potential for strengthening. The US dollar weakened this morning, with investors assessing the impact of potential new US tariffs on countries opposing US ambitions to annex Greenland," he told ANTARA in Jakarta on Monday.
The rupiah exchange rate at the opening of trading in Jakarta on Monday weakened 17 points, or 0.10 percent, to Rp16,904 per US dollar, from Rp16,887 per US dollar previously.
Citing Kyodo, US President Donald Trump has threatened to impose additional import tariffs on countries that do not support the United States' efforts to annex Greenland.
Trump's insistence on annexing Greenland, a strategic and resource-rich autonomous Danish territory, has sparked strong opposition from European leaders.
He emphasized that the world's largest island must be controlled for US national security due to the increasing presence of China and Russia in the Arctic region.
"The rupiah probably won't strengthen much and still has the potential to weaken due to risk-off sentiment stemming from this escalation," Lukman said.
On the other hand, investors are also anticipating the Bank Indonesia Board of Governors' Meeting (RDG) on Wednesday (January 21st), which is expected to decide to maintain interest rates. "However, investors are seeking clarity on the future outlook for interest rates," he said.
Based on these factors, the rupiah exchange rate is predicted to range from Rp16,850 to Rp16,950 per US dollar.
Read: IHSG Expected to Climb as Investors Wary of Rupiah Depreciation
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