Airlangga Highlights Rupiah Exchange Rate Difference Compared to 20 Years Ago

Coordinating Minister for Economic Affairs Airlangga Hartarto assessed that the current depreciation of the rupiah differs from conditions two decades ago. He stated that between 2004 and 2014, the rupiah depreciated by 40% over 10 years, with inflation reaching 17% in 2005 due to oil prices surging to $140 per barrel.

Airlangga added that from 2014 to 2024, the rupiah depreciated 30.6% with inflation at 3%. “So there’s a difference in quality over the past two decades, and today we maintain inflation at 2.4% and rupiah depreciation at 5%,” he said during the National Conference on Regional Economic Development at Balai Kartini, Jakarta, on Monday, 25 May 2026.

He also stressed that the rupiah’s weakness must be viewed in a broader context, noting Indonesia’s economic fundamentals remain strong and banking and corporate sectors are solid.

At the same event, Commission XI Chairman of the DPR, Mukhamad Misbakhun, stated that the rupiah’s weakening to Rp 17,600 per US dollar cannot be equated with the 1998 monetary crisis. He explained that in 1998, the exchange rate even hit Rp 17,800 per US dollar.

Misbakhun added that depreciation at that time reached hundreds of percent in a short period. “But back then, the rupiah was at that level starting from around Rp 2,000 per US dollar. Currently, the rupiah at Rp 17,000 started from Rp 16,800, and the process has experienced controlled volatility,” he said.

The rupiah strengthened by 21 points or 0.12% to Rp 17,696 per US dollar this morning compared to the previous close of Rp 17,717 per US dollar. According to Doo Financial Futures currency analyst Lukman Leong, the strength came amid hopes of US-Iran peace talks.

Domestic sentiment has improved since last Friday when the stock market closed positively. “However, there remains pressure on the rupiah following a large current account deficit in the latest data,” Lukman said on Monday, 25 May 2026.