Rupiah Breaks Through Rp 17,000 and Stock Index Plummets, Finance Minister Addresses Economists' Recession Statements

JAKARTA — The exchange value of the rupiah and the Indonesia Stock Exchange Composite Index (IHSG) both faced pressure during today’s trading session. Observing these conditions, Finance Minister Purbaya Yudhi Sadewa attributed the rupiah’s weakness and sharp IHSG correction to sentiment that emerged after several economists expressed views that Indonesia’s economy was heading towards recession.

“The rupiah at 17,000, the stock index plummeting because some economist colleagues say we are already heading towards recession like 1998 again, purchasing power is already destroyed,” said Purbaya following an inspection at Tanah Abang Market on Monday (9 March 2026). Purbaya stressed that the current state of the national economy is not as concerning as feared.

He noted that economic activity remains in an expansion phase. He also assessed that the economy has not shown signs of slowdown, let alone recession. “The economy is in expansion. We are protecting purchasing power with utmost effort. Not to mention crisis, there is not even recession yet. Even slowdown is not happening yet, we are still in expansion and still accelerating,” he said.

For this reason, Purbaya urged market participants, particularly investors in the stock market, not to be overly concerned about current conditions. The government, according to Purbaya, continues to maintain strong economic foundations. He added that Indonesia has experience in facing various global economic upheavals. This experience serves as the foundation in formulating policies to maintain economic stability. “We already know the causes of the 1998 crisis. We applied those lessons during the 2008–2009 global financial crisis and our economy continued to grow well. In 2020 we also maintained it with the right policies,” he said.

Purbaya assessed that the current government has sufficient experience and policy instruments to dampen market volatility. “So there is no need to be afraid. We have sufficient experience and knowledge to mitigate existing volatility, of course with necessary steps,” he said.

For information, this morning the rupiah exchange rate in the spot market opened under pressure by 69 points or 0.41 percent to the level of Rp 16,994 per US dollar. Currency analyst Lukman Leong from Doo Financial Future stated that the rupiah exchange rate is estimated to remain under pressure against the US dollar, as risk-off sentiment worsens in the global financial market. This condition was triggered by a surge in crude oil prices that has broken through the psychological level of 100 US dollars per barrel. The rise in energy prices has increased investor concerns about potential slowdown in the global economy whilst pushing inflation pressures back across various countries.

“The rupiah is estimated to weaken against the US dollar due to deteriorating risk-off sentiment triggered by crude oil prices exceeding 100 US dollars per barrel, which is feared to have major impacts on the global economy and inflation,” said Lukman.