Finance Minister Purbaya Expects Rupiah to Rebound Soon

Indonesian Finance Minister Purbaya Yudhi Sadewa expressed confidence that the rupiah would soon rebound, citing government efforts to strengthen economic growth and the expected de-escalation of the Middle East conflict.

His remarks were made during a press conference on the operational preparation of PT Danantara Sumberdaya Indonesia (DSI) on Sunday, 31 May 2026, when a foreign media outlet inquired about concerns over the rupiah’s depreciation affecting Indonesia’s economy, particularly low-income households.

“The budget has accounted for the current rupiah depreciation, and the national budget remains stable despite the currency’s current weakness,” Purbaya stated at the Jakarta press conference on Sunday.

He noted that, theoretically, a strong economy leads to a stronger currency. Indonesia’s Q1 2026 economic growth of 5.61% demonstrates a robust domestic economy, which would naturally bolster the rupiah.

“My current focus is ensuring domestic economic growth remains strong in the short, medium, and long term. This growth will naturally strengthen the rupiah’s exchange rate,” he added.

The finance minister stressed his optimism that foreign investors, including direct FDI, would invest in countries with promising growth prospects in the region. “We are growing faster than many other nations, even ranking second in the G20 after India, so our economic outlook is strong,” he said.