Finance Minister Purbaya Defers Explanation on Rupiah Weakness to Central Bank

Jakarta — Finance Minister Purbaya Yudhi Sadewa has stated that the rupiah’s weakness to around Rp 17,000 per US dollar is better explained by the monetary authorities rather than the finance ministry. According to him, currency stability is the domain of the central bank.

Purbaya emphasised that the government is not in a position to explain the causes of rupiah depreciation, as this remains the responsibility of the central bank.

“Why are you asking me? The central bank has only one responsibility: to maintain exchange rate stability. So you should ask the central bank what is happening,” Purbaya said when met at the Ministry of Coordination for Economic Affairs on Monday (16 March 2026).

The state treasurer noted that if he were to provide explanations regarding currency movements, it could create the perception that the government is intervening in monetary policy.

“If I speak, it becomes dangerous, as if I am intervening in the central bank’s policy. So one must ask the central bank,” he said.

According to him, under normal conditions when the economy is growing strongly, the exchange rate should tend to strengthen. For this reason, he again emphasised that explanations regarding rupiah movements should be provided by the monetary authorities.

“When the economy is running rapidly, fundamentals should be good. If it is not normal, the rupiah should strengthen,” Purbaya said.

He assessed that excessive spikes in oil prices could trigger a slowdown in the global economy. According to him, if oil prices rise too high, the global economy could ultimately enter a recession phase, typically followed by a sharp decline in oil prices.

“If oil prices rise too high, the global economy cannot sustain it. As a result, they enter recession, and after that, oil prices can collapse at once,” Purbaya said.

He added that previous experience showed oil prices once surged to around 150 US dollars per barrel before eventually dropping sharply. For this reason, he said, oil producers also have an interest in keeping prices from spiking too high.

“If it rises too high, they end up losing themselves,” Purbaya said.

Money and commodity market analyst Ibrahim Assuaibi said the rupiah’s weakness was triggered by increased geopolitical tensions in the Middle East region, particularly around the Strait of Hormuz, a vital global oil trade route.

“Today the rupiah closed weaker, approaching Rp 17,000 per US dollar. Previously it touched Rp 17,006, and ultimately closed at Rp 16,998,” Ibrahim told reporters on Monday afternoon.