Finance Minister Denies Rupiah Collapse, Claims Only 0.3 Percent Depreciation

JAKARTA — Finance Minister Purbaya Yudhi Sadewa rejected assertions that the rupiah is in collapse, making the statement before President Prabowo Subianto during a Full Cabinet Meeting at the State Palace in Jakarta on Friday, 13 March 2026.

Purbaya stated that whilst global geopolitical turmoil does indeed affect various economic sectors, including currency movements, the actual depreciation has been minimal. “Some say the rupiah has collapsed. But if we look carefully, Sir, since the geopolitical tensions, the rupiah has depreciated only 0.3 percent,” Purbaya said.

He referenced views from several market participants regarding the rupiah’s condition, remarking that those without financial exposure tend to be dismissive. “But those without money speak badly of it, Sir,” he noted.

Purbaya reported that Indonesia’s five-year Credit Default Swap premium remains stable, an indicator reflecting the level of confidence held by global investors regarding Indonesia’s credit risk. Additionally, the spread of government bond yields against US Treasury obligations stood at only 243 points in January, up just 3 points. “This means foreign investors still trust us; it’s only the domestic market that lacks confidence, Sir,” Purbaya stated.

The manufacturing index for Indonesia was recorded at 53.8, representing the highest level in recent years. He further explained that inflation in February would not have reached 4.64 percent if the electricity subsidy component from January to February 2025 were excluded from calculations. Without this component, inflation is estimated at approximately 2.59 percent.

“So we remain safe to grow faster; the economy is not overheating. Therefore, others need not slow economic growth,” he said.

For context, the rupiah against the US dollar had weakened to nearly Rp 17,000. In Friday’s trading, the rupiah declined 65 points or 0.38 percent to Rp 16,958 per US dollar.