Finance Minister assures State Budget remains secure despite rupiah hitting Rp17,800 per US dollar

Finance Minister Purbaya Yudhi Sadewa assured that the rupiah’s weakening to Rp17,800 per US dollar does not necessitate a recalculation of the State Budget (APBN). The Finance Ministry had previously simulated various economic scenarios, including global oil prices reaching $100 per barrel, he said. “We have already calculated this; during the simulation when global oil was $100 per barrel, the rupiah assumption was also considered. So there is no issue, I do not need to recalculate the budget,” Purbaya said during an interview at the General Directorate of Taxes (DJP) headquarters in Jakarta on Wednesday. He also noted that the bond market remains stable despite rupiah pressure, aided by government stabilisation measures including bond buybacks to maintain yields. “Even if the rupiah weakens the bond, the yield falls. Due to government action, and our treasury team’s efforts to buy back some bonds, the yield remains somewhat controlled,” he added. “Stable bond markets are crucial for maintaining foreign investor interest in domestic assets,” Purbaya stated. “As long as the bond market is controlled, foreign investors’ ability to invest in our bonds will be sustained. We are already seeing some foreign capital entering the market.” Purbaya also revealed that the government is preparing further steps to strengthen the rupiah. “The government will take further actions to significantly boost the rupiah’s value,” he added. Despite the rupiah’s depreciation, the Finance Minister noted that the economic fundamentals remain strong. “This situation is illogical given the solid fundamentals; typically, depreciation occurs due to economic disturbances,” he said. The rupiah weakened by 0.20% to Rp17,830 per US dollar.