Indonesia's rupiah has fallen to a historic low, reaching 18,028 against the US dollar on Thursday, surpassing the critical 18,000 mark. This depreciation is primarily attributed to the escalating energy costs triggered by the US-Israel conflict with Iran, which has adversely affected energy-importing nations like Indonesia. The resulting strain on trade balances has led to capital outflows, further weakening the currency. Adding to regional economic pressures, the US has proposed significant import duties on goods from several economies, including Indonesia, over forced labor concerns. Permata Bank's chief economist noted that increased dollar demand for energy imports and a reduced trade surplus are key drivers, despite Bank Indonesia's efforts to stabilize the rupiah through rate hikes and tightened foreign exchange regulations.