Finance Minister: We are not heading towards a 1997-1998 situation

Finance Minister Purbaya Yudhi Sadewa stated that Indonesia is not heading towards a financial, economic, or monetary crisis similar to the 1997-1998 period.

“We are not heading towards a situation like 1997-98 again. Our fiscal position is good, the economy is strong, and there are only negative sentiments here and there slightly disturbing the exchange rate, but this should be fixable with a better combination between the government, the Ministry of Finance, and the central bank,” he said during a working visit to the Tanjung Priok Customs and Excise Office in Jakarta on Saturday.

During trading on Thursday (4/6), the rupiah exchange rate breached Rp18,000 per US dollar for the first time. This depreciation of the rupiah has raised concerns among some parties regarding the potential recurrence of an economic crisis in Indonesia.

However, Purbaya ensured that strengthening the synchronisation between fiscal and monetary policies could drive the recovery of the rupiah. He noted that synchronisation between relevant stakeholders is considered vital to reducing production costs for businesses that rely on imported raw materials.

“We will ensure this happens in the near future,” the Finance Minister added. “What I can say now is that the fiscal position is good, the economy is good, and the President’s leadership remains strong enough to ensure everything proceeds according to his development strategy.”