Purbaya Reveals Main Cause of Rupiah and JCI Collapse is Not Indonesia's Economic Fundamentals

Jakarta, VIVA – Finance Minister Purbaya Yudhi Sadewa has revealed the causes behind the weakening of the rupiah exchange rate and the Jakarta Composite Index (JCI). According to him, the collapse of the rupiah and the JCI is not in line with Indonesia’s economic fundamentals, which remain solid.

The Finance Minister stated that the decline in the exchange rate and capital markets is largely influenced by negative sentiment towards the national economy. Purbaya noted that the national economic condition remains stable, as reflected by the strong performance of the State Budget (APBN) and economic activities across various regions, which continue to show a positive growth trend.

“The main obstacle is the negative perception of our economy, which is not entirely accurate. Because our state budget is good, the economy is growing quite well,” said Purbability on Saturday (6/6/2026).

“Up to now, wherever we go, all economic activity is increasing. But when the perception is that we are about to collapse and so on, some people are influenced,” he added.

To address this, the government, together with Bank Indonesia (BI), is committed to strengthening coordination to dampen negative sentiment in the market and simultaneously increase investor confidence in Indonesia’s economic prospects. “That is what we will eliminate through closer cooperation with the central bank. We were already close previously, but we will make it even closer,” he said.

Previously, Purbaya reported that state expenditure realisation up to May 2026 had reached Rp1,365.4 trillion, equivalent to 35.5 per cent of the 2026 APBN target of Rp3,842.7 trillion. This achievement represents a 34.4 per cent increase compared to the same period last year.

“State expenditure continues to grow by 34.4 per cent. It is good, meaning it is in line with the target; we always want to accelerate spending to reach Rp1,365.4 trillion,” Purbaya said during the APBN KiTa press conference in Jakarta on Friday (5/6).

In detail, the realisation of state expenditure consists of central government spending of Rp1,059.3 trillion, or 33.6 per cent of the established APBN ceiling. This figure also recorded a year-on-year growth of 52.6 per cent.