Purbaya Rejects Indonesia's Dependence on the Dollar, Takes This Step

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa is taking steps to safeguard the rupiah’s exchange rate stability from pressures exerted by the US dollar.

Rather than intervening directly, the approach involves reducing the country’s dependence on the US dollar, especially in terms of debt procurement. He has opted to issue new debt securities in China, known as Panda Bonds, denominated in yuan.

“To strengthen the exchange rate, we will also issue bonds in the form of Panda Bonds in China, with lower interest rates, so we are no longer overly dependent on the dollar,” Purbaya stated in the State Palace area, Jakarta, as quoted on Wednesday (6/5/2026).

On previous occasions, he has also revealed that the yield demanded by Chinese investors is around 2.3%, much lower than the yield on Indonesia’s benchmark 10-year government securities, which has been in the range of 6%.

Therefore, he is confident that issuing Panda Bonds will enhance the diversity of foreign exchange supplies in Indonesia, no longer dominated by the US dollar.

“So our diversification will be even better going forward. Our prospects are good, everyone doesn’t need to worry. The President also told me earlier to convey the message that my money is sufficient, there’s plenty of funds, so you don’t need to be afraid,” he explained.

As is known, the rupiah faced pressure throughout yesterday. This pressure coincided with the announcement of Indonesia’s Q1 2026 economic growth data.

According to Refinitiv data, the rupiah closed 0.26% weaker at Rp17,410/US$. That level also marked the weakest closing for the rupiah on record.

Throughout today’s trading, the rupiah moved in the range of Rp17,380-Rp17,445/US$. This weakening also extended the Garuda currency’s depreciation trend to five consecutive trading days.

Meanwhile, the US dollar index (DXY) at 3:00 PM WIB was observed to strengthen slightly by 0.07% to 98.446.