Palace Remains Optimistic About Indonesia's Strong Economic Fundamentals Despite Rupiah Breaching Rp18,000 per US Dollar

The Presidential Palace, through State Secretary Minister Prasetyo Hadi, has affirmed that the government is continuously monitoring global financial market dynamics affecting the rupiah’s exchange rate. ‘Regarding the rupiah issue, we in the government, including the Ministry of Finance, Bank Indonesia, and the Financial Services Authority, are coordinating intensively to monitor and take necessary steps,’ Prasetyo told journalists at the Presidential Palace complex on Thursday, 4 June 2026. Despite the pressure on the rupiah, the government assesses that Indonesia’s economic fundamentals remain robust. ‘What we can convey is that we must be confident that the economic fundamentals reflected in economic growth are solid,’ Prasetyo explained. This, he said, is demonstrated by sustained economic growth and well-managed inflation. ‘With inflation remaining under control, God willing, we indeed have quite strong economic fundamentals,’ he stated. The rupiah touched the level of Rp18,000 per US dollar on Thursday morning, 4 June 2026. The weakening occurred amidst US dollar dominance in global markets and growing investor concerns over various external risks. The Rp18,000 per dollar position is being closely watched by market participants as it signals increasing pressure on the Garuda currency. A day earlier, the rupiah had closed down 127.5 points, or 0.71 percent, at Rp17,966 per US dollar. The government has commented on the depreciation. Finance Minister Purbaya Yudhi Sadewa said the government is ready to enhance coordination with the Financial System Stability Committee if necessary to maintain financial market stability. However, he stressed that the primary authority for maintaining exchange rate stability lies with Bank Indonesia. ‘That is the central bank’s jurisdiction to maintain the exchange rate. Let them do that first,’ Purbaya told journalists at the Parliamentary Complex in Jakarta on Wednesday, 3 June 2026. ‘We will only hold routine meetings as usual. But if we see that more intensive coordination is needed to improve the exchange rate, we will do so,’ he added.