Purbaya Denies Indonesia Is Heading Towards the 1998 Currency Crisis
Finance Minister Purbaya Yudhi Sadewa has dismissed the suggestion that the current depreciation of the rupiah is similar to the 1998 monetary crisis. He argues that Indonesia’s present economic conditions are markedly different, underpinned by fundamentals he regards as still robust.
“If the rupiah weakens, it would be as if we are moving toward another 1998. The difference is that 1998 involved policy mistakes and social-political instability that followed after a year of recession,” Purbaya told reporters after a ceremony handing over several aircraft at Halim Perdanakusuma Air Force Base on Monday (18 May 2026).
He explained that by mid-1997 Indonesia had already entered a recession, which was further aggravated by social and political instability that ultimately triggered the 1998 monetary crisis.
Compared with that period, Purbaya assessed that domestic economic conditions today remain relatively solid and supported by growth that remains resilient. He said this situation provides room for the government to improve macroeconomic indicators affected by global market dynamics.
In response to the downturn in the Jakarta Composite Index (IHSG), which briefly dropped to around 6,628 at the opening of morning trading, Purbaya said the move was more influenced by short-term market sentiment. He assured the government remains focused on maintaining economic fundamentals so that the national growth target is not disrupted by financial market volatility.
As a stabilisation measure, the government has begun increasing activity in the bond market with larger volumes. This step is taken to maintain the stability of the government securities market and to curb foreign investor selling that could trigger capital losses from falling bond prices.
In addition, Purbaya urged domestic investors to remain calm in the face of a stock-market correction.
“So friends, there is no need to worry. Stock-market investors, as I say, don’t be afraid to be dragged to the bottom now. If I look at the technicals, in a day or two it will rebound. So don’t forget to buy shares,” he concluded.
Rupiah Today 18 May 2026 Reaches Rp17,630 per US Dollar
The rupiah’s exchange rate against the United States dollar (US) opened under pressure on Monday morning (18 May 2026). Analysts predicted the rupiah would trend softer at the start of the week, amid global sentiment.
The rupiah fell 33 points or 0.19 percent to Rp17,630 per US dollar, compared with the previous close at Rp17,597 per dollar, Antara reported on Monday.
Economy, currency, and commodities analyst Ibrahim Assuaibi projected that the rupiah would continue to weaken on Monday, 18 May 2026. He said the rupiah was expected to trade in a range of Rp17,590 to Rp17,660 per US dollar amid persistent external pressures on emerging-market currencies, including Indonesia.
“The rupiah (Monday 18 May 2026) is likely to weaken within the range Rp17,590-17,660,” Ibrahim told Liputan6.com.
Pressure on the rupiah was also evident on Friday, 15 May 2026, when the currency briefly touched Rp17,600 per dollar. Google Finance data show the rupiah briefly at Rp17,612 per dollar before moving to around Rp17,579 per dollar on Friday morning.
IHSG Slumped 3.76% in the First Session, All Stock Sectors Dragged
The Jakarta Composite Index (IHSG) fell in the morning session on Monday (18 May 2026). The IHSG closed the session at 6,470.34, down 3.76%. The LQ45 index slipped 3.06% to 637.77, with most key indices under pressure.
In the first session, the IHSG traded between a high of 6,631.28 and a low of 6,398.78. A total of 682 stocks fell, 84 rose and 52 remained unmoved. Trading frequency stood at 1,728,389 with a turnover of about Rp12 trillion. The US dollar hovered around Rp17,671 against the rupiah. All sectors were under pressure.
The energy sector fell 3.36%, the basic materials sector dropped 8.14%, marking the largest decline. The industrial sector slipped 4.79%, the consumer non-cyclical sector declined 2.6%, the consumer cyclical sector fell 3.44%, and the health sector shed 3.84%.