Finance Minister Urges Public Not to Panic Over Rupiah's Decline, Purbaya: We Won't Be as Bad as '98

Finance Minister Purbaya Yudhi Sadewa stated that the government and Bank Indonesia (BI) are preparing measures to safeguard financial market stability, particularly in the bond market.

He made this comment in relation to the rupiah exchange rate, which has weakened to Rp17,500 per US dollar.

“We are taking steps to help strengthen (the rupiah) also from the bond market side. We might see if we can intervene to help or not. But there will be improvements going forward,” Purbaya said at the Attorney General’s Office in Jakarta on Wednesday, 13 May 2026.

He emphasised that although the rupiah exchange rate is under pressure, the public need not panic because Indonesia’s economic foundation remains solid and is vastly different from the 1998 economic crisis.

“No (need to panic), because our economic foundation is good. We know exactly our weaknesses and can fix them. We won’t be as bad as in ’98,” he said.

To take steps to support the rupiah’s strengthening, Purbaya assured that the government will focus on maintaining bond market stability. According to him, volatility in that market can trigger capital outflows.

He noted that when bond prices are unstable, investors tend to sell their assets due to fears of capital loss.

“We will intervene to stabilise the bond market. Because if bonds are unstable, people sell due to fear of capital loss. Especially if bonds strengthen, there is potential for capital gains. Besides, they usually get capital gains,” Purbaya said.

He explained that investors are generally attracted to profit opportunities from rising bond prices. Therefore, maintaining market confidence is crucial to ensure capital continues to flow into the country.

“We will maintain bond market stability to assist the central bank,” he said.