Purbaya Reiterates That Indonesia's Situation Is Different from the 1998 Monetary Crisis

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa refuted claims that the rupiah’s depreciation against the US dollar was similar to the 1998 crisis. As noted, yesterday’s rupiah weakness, Monday (18 May 2026), coincided with the IHSG falling by more than 4%.

According to him, the current conditions are different from the recession or monetary crisis of 1997-1998 that pressed the rupiah at that time.

‘There are a lot of sentiments (IHSG weakening); if the rupiah weakens it seems we will move like 1997-1998 again. Different, 1997-1998 the policy was wrong and social-political instability occurred after a year of recession. In mid-1997 we were already in recession,’ said Purbaya when interviewed at Halim Perdanakusuma Airport, East Jakarta, Monday (18 May 2026).

‘TSo friends, don't worry about investors in the stock market; if I say don't fear to buy low now’ - ‘buying the dip’ - he added.

Purbaya also provided a technical view that stock movements would rebound within one to two days.

‘I see the technicals; in one to two days it should have already recovered,’ he said.

He also confirmed that the Ministry of Finance is taking stabilisation measures for the rupiah. One of them is activating the Bond Stabilisation Fund (BSF) in the near future. This instrument exists to absorb government bonds issued by investors, so as not to trigger panic in the bond market.

‘Later we will also enter the bond market from today. It has entered but only a little; starting today we will enter more significantly so that the bond market is controlled. Foreign holders of bonds will not exit for fear of capital losses from falling bond prices. That will help the rupiah move a little,’ said Purbaya.

Purbaya also said that the budget allocation prepared to run this scheme is Rp 2 trillion per day.