Purbaya: Controlling the Rupiah is Easy as Long as Economic Foundations are Sound

JAKARTA - Finance Minister Purbaya Yudhi Sadewa stated that it would be easier for him to control the rupiah as long as the economic foundation remains sound.

Purbaya made this remark in response to the US dollar exchange rate against the rupiah, which briefly touched Rp17,000 recently.

“As long as our economic fundamentals are sound, managing the rupiah is easier compared to when the economy is in turmoil,” Purbaya said at the Palace in Jakarta on Tuesday, 10 March 2026.

“If we ensure good economic development, sufficient money supply in the system, and the BI (Bank Indonesia) monitors the exchange rate situation accordingly, then good cooperation between the government and BI is necessary to maintain exchange rate stability,” he explained.

“And if we act in unison like this, controlling global market fluctuations is not too difficult,” added Purbaya.

Observing this situation, Purbaya assessed that the weakening rupiah and sharp correction in the Jakarta Composite Index were linked to sentiment that emerged after some economists suggested that the Indonesian economy was heading towards recession.

“The rupiah at 17,000 and IHSG plummeted because some economist colleagues said we’re already heading towards recession like 1998 again, with purchasing power already destroyed,” said Purbaya after inspecting Tanah Abang Market on Monday, 9 March 2026.

Purbaya emphasised that the current state of the national economy is not as concerning as feared. He noted that economic activity remains in an expansion phase.

According to him, the government continues to work hard to maintain the public’s purchasing power. He also assessed that the economy has not shown signs of slowdown, let alone recession.

“The economy is in expansion. We are protecting our purchasing power vigorously. Not even crisis, recession has not happened. Even slowdown has not occurred; we are still in expansion and still accelerating,” he said.