Indonesian Government Responds to Rupiah Depreciation
JAKARTA — As the rupiah exchange rate against the US dollar plummeted to the level of Rp 17,663, the Indonesian government has asserted that the nation’s economy remains robust. President Prabowo Subianto stated that citizens in rural areas do not utilise the US dollar and suggested that as long as Finance Minister Purbaya Yudhi Sadewa remains confident, there is no cause for concern.
“Purbaya is very popular right now. As long as Purbaya can smile, just be calm; there is no need to worry. No matter how many thousands the dollar reaches, people in the villages do not use dollars,” Prabowo remarked in Nganjuk on Saturday (16/5/2026). “Believe that our economy is strong, our fundamentals are strong. Regardless of what people say, Indonesia is strong. Believe in our strength and our people. All leaders must work for the people,” he added.
Minister Purbaya emphasised that Indonesia’s economic foundation is solid and expressed confidence that the government can rectify the current situation. “There is no need to panic. Because our economic foundation is good, we know exactly where our weaknesses lie, and we can fix them,” Purbaya stated at the Attorney General’s Office in Jakarta on Wednesday (13/5/2026). He further noted that the current situation is not as dire as the 1998 crisis. “We will not be as bad as in ’98; in fact, it won’t be bad. With a strong economic foundation, it is not actually too difficult,” he asserted, adding that while the Central Bank holds the authority, the government will provide support.
The rupiah exchange rate against the US dollar has hit a new record low, with the dollar reaching Rp 17,600 as of Friday (15/5/2026). Following the rate hitting Rp 17,424 on 5 May 2026, Bank Indonesia (BI) has prepared seven measures to strengthen the rupiah. These steps include direct intervention in both domestic and foreign foreign exchange markets, attracting foreign capital inflows through financial instruments such as BI Rupiah Securities, and purchasing government securities (SBN) to maintain market stability.