Purbaya Denies Rupiah Weakness Due to Slumping Indonesian Economy

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has assured that the current pressure on the rupiah exchange rate does not indicate a worsening of the domestic economy. Compared to Malaysia and Thailand, Indonesia’s economy remains robust.

He assessed that the rupiah’s exchange rate movements are influenced by global conditions as well as expectations and noise regarding domestic circumstances. This noise or clamour must be addressed and controlled. However, Purbaya views matters concerning these expectations as outside his remit as finance minister.

“This is also happening with noise suggesting our economy is collapsing, but that’s not the case,” Purbaya stated during a media briefing on Friday (24/4/2026).

Therefore, Purbaya refrained from commenting in detail on the rupiah’s depreciation. As is known, the rupiah exchange rate once breached the level of Rp17,300 per US dollar. According to him, these rupiah movements are the responsibility of Bank Indonesia.

He also recounted his experience when meeting with global institutions and investors in the United States. There were parties who asked: “Are you deliberately weakening the rupiah?”

As is known, there have been several cases where one country weakens its currency’s exchange rate to gain a competitive edge.

According to Purbaya, that is not true. With Indonesia’s current healthy fundamentals, when weakening occurs, it instead generates negative expectations.

“With the fundamentals we have, negative expectations are formed because many are saying we will fall, but if I look at the fundamentals, they are strong, so turning it around won’t be difficult,” he explained.