Purbaya States Negative Perception of Indonesian Economy Weakens Rupiah and JCI

Finance Minister Purbability Yudhi Sadewa believes that the weakening of the JCI and the Rupiah exchange rate is being driven by negative perceptions or sentiments regarding the national economic condition, which do not align with Indonesia’s actual economic fundamentals. According to the Minister, Indonesia’s economic fundamentals remain well-maintained, with the state budget (APBN) performance remaining strong while economic activities across various regions continue to show positive growth.

“The main obstacle is the negative perception of our economy, which is not entirely accurate,” Purbaya stated during a press conference at the House of Representatives (DPR RI) in Senayan, Jakarta, on Saturday, 6 June 2026. “Because our state budget is good, the economy is growing quite well. So far, wherever we go, all economic activity is increasing. But when perceptions arise that we are about to collapse, some people are influenced.”

Purbaya emphasised that the government, alongside Bank Indonesia (BI), will strengthen coordination to eliminate the negative perceptions developing in the market and bolster investor confidence in the national economic outlook. “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,” said Purbaya.

Previously, Finance Minister Purbaya reported that the realisation of state expenditure up to May 2026 reached IDR 1,365.4 trillion, or 35.5 per cent of the 2026 state budget target of IDR 3,842.7 trillion. This realisation represents a growth of 34.4 per cent compared to the same period in the previous year. “State expenditure continues to grow by 34.4 per cent. This is good, meaning it is in line with our target; we always want to accelerate spending to reach IDR 1,365.4 trillion,” Purbaya said during the APBN KiTa press conference in Jakarta on Friday, 5 June 2026. In detail, state expenditure consists of central government spending amounting to IDR 1,059.3 trillion, or 33.6 per cent of the state budget allocation. The realisation of central government spending grew by 52.6 per cent year-on-year.