Purbaya's Plan to Strengthen the Rupiah Exchange Rate

Finance Minister Purbaya Yudhi Sadewa plans to revive the Bond Stabilization Fund scheme, an initiative of the Ministry of Finance. The goal is to strengthen the rupiah exchange rate and the stability of the bond market, particularly the yield on Government Securities (SBN). “I have my own Bond Stabilization Fund. It actually already exists, but it has never been implemented. I want to revive it,” he explained, quoted from Kontan on Wednesday (6/5/2026). “It will start tomorrow,” he added. This policy is being taken as Purbaya learns of the yield increase from 5.9 percent to 6.7 percent, which inversely affects bond prices. As a result, it triggers potential losses for investors, prompting sell-off actions and ultimately pressuring the domestic financial market, including the weakening of the rupiah exchange rate. The Ministry of Finance will coordinate with Bank Indonesia (BI) on this matter. “We will coordinate with the central bank. But this is my way to help safeguard the rupiah,” he said. “Why is there pressure on the exchange rate in the short term? There are several global factors and then seasonal factors,” said Perry, quoted from Kompas.com on Tuesday (5/5/2026). Then, the flight of foreign capital from Indonesia due to the US government yield on 10-year tenor reaching 4.47 percent. “There is capital flight from emerging markets including Indonesia,” Perry stated.