Rupiah Breaches Rp17,100, Finance Minister Says It Remains in Line with State Budget Scenario
Finance Minister Purbaya Yudhi Sadewa has emphasised that the weakening of the rupiah exchange rate, which has breached the Rp17,000 per US dollar level, remains within the scenarios prepared by the government.
According to him, this rupiah movement does not immediately disrupt the structure of the State Revenue and Expenditure Budget (APBN) because the Ministry of Finance has prepared various simulations to anticipate market volatility.
“No, let me emphasise first, the simulation figure for the rupiah is not the previous APBN rupiah; it has been raised to a certain level, so this is still included in the scenario calculation,” said Purbaya when met in Jakarta on Tuesday (7/4/2026).
Nevertheless, Purbaya declined to reveal the exact exchange rate figure used in the government’s latest simulation.
He assessed that disclosing such a figure could potentially trigger speculation in the market.
“I’m not saying what the rupiah is. If I say, ‘oh, according to the Finance Minister, the rupiah is going there’, have you already bought dollars? So for the rupiah, we leave it to the central bank, to the experts,” he said.
He also expressed confidence in Bank Indonesia in maintaining the stability of the rupiah exchange rate.
Currency and commodity analyst Ibrahim Assuaibi assessed that the pressure stems from the escalation of conflict in the Middle East.
The deadline set by US President Donald Trump to Iran regarding the Strait of Hormuz has triggered market concerns.
According to Ibrahim, disruptions to tanker traffic in recent weeks have tightened expectations for global energy supplies. Risks in the oil market have also increased.
“Investors are preparing for potential escalation in the Middle East ahead of the deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz,” said Ibrahim.
“Disruptions to tanker traffic in recent weeks have tightened supply expectations and increased the risk premium across the oil markets,” he added.
Diplomatic efforts have yet to show results. Iran has rejected a proposal supported by the United States.
The proposal includes a 45-day ceasefire and the gradual opening of the Strait of Hormuz. Meanwhile, Iran has proposed different conditions.