Purbaya Confident Rupiah Will Strengthen Again in Second Half of 2026, Here Are the Indicators

Jakarta – Finance Minister Purbaya Yudhi Sadewa is optimistic that pressure on the rupiah exchange rate will soon subside and that the currency will strengthen gradually entering the second half of 2026. He stated that the rupiah is indeed still facing pressure in early June 2026, mainly influenced by global sentiment, risk-off conditions in financial markets, and pressure on the current account and domestic financial transactions. However, Purbaya believes that stronger synergy between fiscal authorities, monetary authorities, and the financial sector will be able to control the pressure. In addition, he is confident that the latest policy on the governance of Export Proceeds and efforts to deepen financial markets will increase the supply of foreign exchange, thereby helping monetary authorities stabilise the rupiah through intervention in the foreign exchange market. “So the rupiah will gradually strengthen again in the second half of 2026,” Purbaya said during a Working Meeting with Commission XI of the House of Representatives in Senayan, Jakarta, on Tuesday, 10 June 2026. He added that the optimism is also supported by improving investor confidence in Indonesia’s financial markets. This condition is expected to encourage additional foreign capital inflows into Indonesia and strengthen domestic foreign exchange supply. According to Purbaya, this condition has actually been reflected in net foreign capital inflows into Government Securities and Bank Indonesia Rupiah Securities throughout the second quarter. Ministry of Finance data as of 1 April recorded that up to 5 June 2026, Government Securities recorded a net inflow of Rp 18.5 trillion, while Bank Indonesia Rupiah Securities posted a net inflow of Rp 78.5 trillion. “Foreign capital flows also showed significant improvement in the second quarter of 2026, especially in Government Securities and Bank Indonesia Rupiah Securities instruments. Although the stock market is still recording outflows, overall investor interest in domestic financial instruments remains maintained,” he stated.