Purbaya Confident Rupiah Depreciation Has Not Yet Impacted Economy

Finance Minister Purbaya Yudhi Sadewa has stated that the current rupiah depreciation has not disrupted fiscal conditions or national economic activity. He explained that the government had factored in depreciation risks when drafting the budget, ensuring fiscal stability. ‘From a budgetary perspective, we have accounted for rupiah depreciation approaching current levels, so my budget remains sound despite the currency weakening to its present rate,’ Purbaya said during a press conference in Jakarta on Sunday, 31 May 2026.

He added that a strong economy would eventually strengthen the currency, stressing the need to maintain robust domestic growth. ‘This will almost automatically strengthen the currency, as I believe investors, particularly foreign direct investment (FDI) and foreign investors, will be keen to invest in a country offering the region’s most promising growth prospects,’ he said.

Indonesia’s economic growth ranks second fastest among G20 nations, after India, indicating strong prospects that mean the rupiah’s depreciation has not yet hindered national economic activity. Purbaya also noted reports from Bloomberg and Al Jazeera suggesting the US, Iran, and Israel are close to an agreement, which could lead to improved global conditions and better economic performance within two to three months.