Purbaya Assures Indonesia Will Not Repeat the 1998 Crisis

Jakarta – CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa emphasised that Indonesia will not re-live the economic crisis that struck in 1998, even though the rupiah has recently weakened. He said the public should not fear that the economy will deteriorate, and he is optimistic that the rupiah will soon strengthen. ‘So friends, there’s no need to fear that the exchange rate will collapse like 1998. There will be a significant supply of dollars entering our economy. So the rupiah will strengthen,’ Purbaya said at the Jogjakarta Financial Festival at Jogja Expo Centre (JEC) on Friday (21/5/2026). Purbaya explained that the dollar supply entering the country will come through the new policy rule Devisa Hasil Ekspor Sumber Daya Alam (DHE SDA), which will push the exchange rate higher. As is known, the government will implement the new DHE SDA rule effective from 1 June 2026. He added that the public should not be panicking about the currency weakness and urged dollar holders to dispose of their dollars promptly. ‘I tell FX players to quickly dump their dollars. We will push the rupiah to Rp 15,000 per US dollar,’ he asserted. ‘If the President says, while Purbaya smiles, the economy is good, keep smiling!’ he said, to applause from the audience. As is known, under the new DHE SDA rules outlined in Government Regulation (PP) No. 21 of 2026, 100% of exporters’ dollars must be parked into the Himbara, the group of state-owned banks, and must retain 30% of their DHE for 3 months for the oil and gas sector and 100% for 12 months for non-oil and gas in a dedicated account. Purbaya regards the government’s decision to implement this DHE rule as a sound and appropriate step. He is confident that the supply of foreign exchange will enter significantly in June.