The global dollar strengthened against various other currencies, including the rupiah, having a significant impact on the Indonesian economy. The increase in the US dollar exchange rate was influenced by various factors, including the Federal Reserve’s monetary policy which tends to be tighter. In this context, it is important to understand how a strengthening dollar can affect various sectors of the Indonesian economy. First, the strengthening of the global dollar has direct implications for the trade balance. Indonesia is a country known to depend on imports, especially for capital goods and raw materials. As the value of the dollar rises, import costs become higher, potentially eroding the profit margins of Indonesian companies that depend on these goods. As a result, production costs may increase, potentially increasing the price of goods in the domestic market. Second, the export sector also felt a significant impact. Although Indonesia’s export goods have become more competitive in international markets due to the depreciation of the rupiah, the strength of the dollar can make it difficult for companies to access the raw materials needed to produce these export goods. For example, companies that have to import energy or other raw materials will face challenges in maintaining efficient costs, which could lead to reduced competitiveness. Third, the movement of foreign capital flows into and out of Indonesia is greatly influenced by the strengthening of the dollar. International investors tend to look for USD-denominated assets when the value of the dollar rises. This could lead to capital flight from Indonesian financial markets, potentially weakening the value of the rupiah further, creating uncertainty for local and foreign investors. Fourth, the impact on inflation is also worth paying attention to. Rising import costs exacerbated by a strengthening dollar could exacerbate inflationary pressures in Indonesia. High inflation causes people’s purchasing power to erode, affecting domestic consumption, which is the main driver of economic growth. Rising prices of consumer goods could trigger a policy response from Bank Indonesia in the form of an increase in interest rates, which may do little more than slow economic growth. Fifth, in terms of infrastructure development, the costs of projects using foreign components also increase due to the strengthening of the dollar. Many strategic infrastructure projects depend on foreign financing, including loans denominated in US dollars. An increase in the value of the dollar will affect debt repayments, eroding the government budget which could have been allocated to other, more productive programs. Lastly, the tourism sector could also be affected by a strengthening dollar. While foreign tourists may feel at an advantage when visiting Indonesia with a lower exchange rate, higher spending on local goods and services may lead them to reduce their trip duration or daily spending. From all these impacts, it is clear that the strengthening of the global dollar is not only an issue for economic actors, but also affects the welfare of society as a whole. Policymakers need to implement appropriate strategies to overcome the negative side effects of a strengthening dollar while capitalizing on the potential increase in exports that may occur.