Government Optimism Amid the Rupiah’s Decline

JAKARTA, KOMPAS.com — The government continues to show optimism about the national economy even though the rupiah has weakened in recent weeks. According to Reuters data, on Monday (18/5/2026) the rupiah stood at Rp 17,645 per United States dollar (US$), weakening 1.17 percent from the previous trade. Despite the rupiah’s weakness, Finance Minister Purbaya Yudhi Sadewa claimed that Indonesia’s economy remains solid, so the public need not worry. ‘Don’t be afraid; our economic fundamentals are sound, our fiscal position is solid,’ Purbaya said at the Presidential Palace complex in Jakarta, on Monday (18/5/2026). He stressed that all parties, both government and the private sector, contribute to domestic economic growth. ‘If we break down the shares, from 5.6 there, perhaps 2.9 from household consumption, 1.7 from investment, 1.3 from government spending. The total will approach six there; exports and imports also contribute, you see. So that’s how it works,’ he added. According to Purbaya, household purchasing power remains fairly good, so he reiterated that the public need not worry. Purbaya assured that the government is truly improving the economy, as reflected in data for the fourth quarter of 2025 and the first quarter of this year. He noted that economic growth is accelerating and will be kept up to speed up even more. ‘Remember, in the first quarter we grew 5.6 percent while the global economy was shaken. That is an extraordinary achievement because the President’s reforms were implemented before any negative shocks from the global economy. Thus the construction strategy is very good from the President,’ he said. In the midst of the US dollar exchange-rate issue, Indonesian President Prabowo Subianto invited the economic ministers and officials for a limited meeting yesterday afternoon. After the meeting, Bank Indonesia Governor Perry Warjiyo expressed confidence that the rupiah would stabilise soon. ‘We are confident it will stabilise,’ Perry said briefly as he left the Palace.