Rupiah Breaches Above Rp17,400 per US Dollar, Airlangga Reveals Government's Series of Stabilisation Measures

The rupiah exchange rate against the US dollar was recorded weakening by 11 points or 0.07 percent to Rp17,405 per US dollar from the previous position of Rp17,394 per US dollar on Tuesday morning.

In response to this, Coordinating Minister for the Economy Airlangga Hartarto explained several government measures to maintain the stability of the rupiah exchange rate amid pressures from global dynamics. These include strengthening currency swap cooperation with other countries and diversifying state financing instruments.

“We have prepared with Bank Indonesia regarding currency swaps with China, Japan, Korea, and other countries,” said Airlangga at the Coordinating Ministry for the Economy in Jakarta on Tuesday, 5 May 2026.

He explained that the government is also preparing financing strategies through the issuance of securities in various currencies. This step aims to strengthen liquidity and maintain the stability of the rupiah exchange rate.

“Going forward, we will continue to prepare the composition related to the level of debt we can have, the securities we can issue, such as from China or Yen (Japan), to guard against pressure on the US dollar,” he stated.

Furthermore, he assessed that the rupiah’s weakening is not only occurring in Indonesia but is also experienced by several other countries. “Various countries are indeed experiencing weakening against the US dollar,” he revealed.

Airlangga explained that the increased demand for dollars is also influenced by seasonal factors such as the needs for Hajj pilgrimage and dividend payments in the second quarter of 2026. In addition, external pressures are triggered by rising geopolitical tensions in the Middle East, which are driving the strengthening of the US dollar and increasing demand for safe haven assets in the global market.

“Usually also during the Hajj pilgrimage, and usually in the second quarter there are also dividend payments, so demand for the US dollar is high,” he added.

Airlangga emphasised that the policies taken by the government are dynamic and adjusted to the development of global conditions. The government will also continue to carry out mitigation against potential external risks.

He hopes that policy coordination between the government and Bank Indonesia can continue to strengthen national economic stability amid future global dynamics.