Airlangga Compares Rupiah Performance Between 2004-2014 and Now, Says Pressure Now More Controlled

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto compared the rupiah’s exchange rate against the US dollar over the past two decades.

He stated that current pressure on the rupiah is far more controlled compared to previous periods.

Airlangga said that between 2004 and 2014, the rupiah depreciated by around 40% over a decade.

At the same time, domestic inflation surged to 17% in 2005 due to global oil prices hitting $140 per barrel.

In contrast, between 2014 and 2024, the rupiah’s depreciation was lower at 30.6% with inflation kept much more controlled at around 3%.

‘Now, in the 2014-2024 period, the rupiah depreciated by 30.6% and inflation was 3%. So there’s a quality difference over the past two decades,’ Airlangga said.

He added that current conditions are better as domestic inflation remains low, while the rupiah’s weakness this year has been relatively limited.

‘Today, we maintain inflation at 2.4% and the rupiah has depreciated by 5%,’ he said.

Airlangga said Indonesia’s economic fundamentals are currently stronger than in the past.

He noted that the corporate and banking sectors remain solid despite global pressures and international financial market volatility.

‘Our fundamentals are solid, and the corporate sector is also entirely solid. As I always say, our economy remains strong,’ he added.

The remarks came amid the rupiah’s weakening against the US dollar. Market data showed the US dollar exchange rate at around Rp17,700 per dollar on Monday morning.