Purbaya: Rupiah Resists Global Turbulence, Investor Confidence Remains Strong
Jakarta — Finance Minister Purbaya Yudhi Sadewa stated that the stability of the rupiah’s exchange rate and strong confidence from foreign investors in the domestic financial market demonstrate that Indonesia’s economic resilience remains intact amidst global dynamics.
He noted that global turbulence often generates concerns about rupiah weakness. However, based on available data, pressure on the rupiah has been relatively limited.
“Some say the rupiah is collapsing, but if you look at it properly, every time there is a war, the rupiah depreciates by only 0.3 per cent. So actually, our resilience is quite good,” Purbaya said during a full cabinet session at the State Palace in Jakarta on Friday.
Purbaya explained another indicator demonstrating investor confidence is the yield spread between Indonesia’s State Securities (SBN) and US government bonds or US Treasury.
According to him, the SBN spread against US Treasury has only increased marginally from 240 basis points in January 2025 to approximately 243 basis points at present.
“The increase is only limited to 3 basis points. This means foreigners still trust us. It’s only the domestic investors who don’t,” he said.
He stated that foreign capital flows into Indonesia’s financial market also continue to show positive trends. Although experiencing fluctuations, capital flows from the end of last year through early this year have tended to flow into Indonesia.
The latest data from March shows foreign fund inflows are still recorded entering several financial instruments. Investments in stocks and Indonesia Bank Rupiah Securities (SRBI) each recorded inflows of approximately 2.2 trillion rupiah.
Meanwhile, for State Securities instruments, there was only limited outflow of approximately 0.7 trillion rupiah.
“So, after the volatility in March, actually funds are still coming in here. This means they truly believe our foundation is solid. This applies to genuine investors like these, because they are putting their money in,” Purbaya explained.