Finance Minister Confident Strong Economic Fundamentals Will Help Maintain Rupiah Stability

JAKARTA — Finance Minister Purbaya Yudhi Sadewa has affirmed that the government continues to safeguard the stability of the rupiah’s exchange rate amidst global market dynamics by strengthening the nation’s economic fundamentals.

Purbaya stated that exchange rate stability would be easier to maintain if domestic economic conditions were robust. “As long as our economic foundation is sound, controlling the rupiah is easier compared to when economic conditions are weak,” he said at the Presidential Palace Complex in Jakarta on Tuesday (10 March 2026).

One approach being implemented is maintaining adequate liquidity within the financial system and monitoring exchange rate movements periodically. According to him, close coordination between the government and Bank Indonesia is an important factor in dampening the effects of global market volatility.

“If we ensure economic development is positive, liquidity in the system is sufficient, and Bank Indonesia monitors exchange rate conditions, then good cooperation between the government and BI is very important for maintaining exchange rate stability,” he stated.

Purbaya also addressed concerns regarding rising global oil prices, which could increase the government’s energy subsidy burden, particularly approaching Eid al-Fitr. He noted that Indonesia’s fiscal position remains sufficiently strong to absorb the recent increases in energy prices.

“We remain secure and strong. This increase has only occurred over the past few days,” he said.

With the state budget assuming oil prices of approximately 70 US dollars per barrel, the short-term increase in oil prices was judged insufficient to significantly alter the government’s budget calculations. Energy subsidies are calculated on an annual basis, meaning the recent price increase over several days is not substantial enough to necessitate budget adjustments.

“Energy subsidies are calculated for a full year. So this increase over a few days is not enough to change our budget. We are still able to absorb it,” Purbaya concluded.