Airlangga: Current Rupiah Depreciation Better Than Previous Crises

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia’s current macroeconomic conditions are relatively better compared to previous crisis episodes in 2005 and 2008. The economic fundamentals are deemed stronger, with the rupiah’s depreciation at a lower level.

“When assessed in today’s context, our macro situation is relatively better, fundamentals are stronger, and the rupiah depreciation is around 5%, significantly lower than previous cases,” he said at the Presidential Palace following a meeting between the President and Indonesian economic figures, as reported on Monday (25 May 2026).

According to Refinitiv, the rupiah’s depreciation as of 22 May 2026 reached 6.12% year-to-date (YTD). During the 2005 crisis, the rupiah weakened by 2% year-to-date until 22 May 2025 and by 5.99% year-on-year (YoY).

Following discussions with Burhanuddin Abdullah, Paskah Suzetta, and Lukita Dinarsyah Tuwo, the government has identified key lessons for anticipatory measures to address potential future challenges. President Prabowo also instructed relevant officials, including the Finance Minister, to continuously monitor regulations that strengthen financial sector stability and maintain banking prudential principles.

“The President has asked us, the Finance Minister, to monitor regulations to bolster financial conditions and uphold banking prudential standards,” Airlangga stated.

The government also considers it necessary to assess strengthening bank capitalisation, given the large number of banks in Indonesia. This step is part of efforts to maintain national financial system stability amid global dynamics.

Airlangga added that the meeting underscored President Prabowo’s leadership approach, emphasising a combination of experience, vigilance, and strengthening fundamentals as key to maintaining national economic stability while ensuring Indonesia remains resilient and adaptive to future global challenges.