The Indonesian Rupiah strengthened by 0.59% (97 points) to IDR 16,351 per US dollar by the close of trading on Tuesday. The gain was attributed to US President Donald Trump's decision to delay a 25% import tariff on goods from Mexico and Canada for 30 days, slightly weakening the US dollar. However, a 10% tariff on China remains in effect.  Additionally, Canada and Mexico agreed to enforce stricter border control measures against immigration and drug smuggling, prompting Trump's tariff postponement. Trump is also scheduled to speak with Chinese President Xi Jinping this week regarding the import tariffs on Chinese goods.  

Despite the positive developments for the rupiah, market concerns persist regarding high US interest rates, with the Federal Reserve signaling reluctance to ease its monetary policy amid Trump’s uncertain trade policies. On the domestic front, Indonesia's Purchasing Managers' Index (PMI) for January 2025 rose to 51.9 from 51.2 in December 2024. According to market analyst Ibrahim Assuaibi, the increase was driven by higher production and new orders from both domestic and international markets, indicating positive momentum for Indonesia’s manufacturing sector.  

Source:
https://www.rri.co.id/keuangan/1302917/trump-tunda-tarif-impor-rupiah-naik-97-poin