Indonesia Not in Recession Despite Rupiah Weakness and Stock Index Decline, Finance Minister Purbaya Asserts

Jakarta – Finance Minister Purbaya Yudhi Sadewa has responded to concerns about the weakening of the rupiah against the US dollar at the level of Rp17,000 and the decline of the Jakarta Stock Exchange (IHSG) by up to 5 per cent.

According to him, the weakening of the rupiah and IHSG is influenced by negative sentiment from economists regarding Indonesia’s economic condition. “The rupiah at Rp17,000 and the IHSG’s collapse is because some economists are saying that we have already started to enter recession like in 1998 again, yes, that is how purchasing power has been destroyed,” said Purbaya at Tanah Abang Market, Jakarta, on Monday, 9 March 2026.

However, he stressed that Indonesia’s economy is far from recession. In fact, Purbaya stated that the country’s current economic condition is in expansion with purchasing power remaining intact. “Not even a crisis, let alone recession – not even a slowdown yet. We are still expanding, still accelerating. That is what we are continuing to safeguard in the coming weeks,” he said.

Therefore, Purbaya urged investors not to be afraid because Indonesia’s economy will continue to be well-managed. “We already know what caused the 1998 crisis. We applied those lessons in 2008-2009 when the global economy fell but we still grew well, didn’t we? In 2020 we also managed the economy with the right policies,” said Purbaya. “So friends, there is no need to be afraid – we already have sufficient experience and knowledge to mitigate all the turmoil that occurs,” he added.