Rupiah Breaks Through Rp17,800 Against US Dollar as Finance Minister Assures Budget Stability

Finance Minister Purbaya Yudhi Sadewa has assured that the rupiah’s depreciation to Rp17,800 per US dollar does not require the government to revise the National Budget (APBN). The Finance Ministry, he said, had previously conducted simulations of various economic scenarios, including assuming global oil prices at $100 per barrel.

“We have already accounted for this. During the simulation when global oil prices reached $100 per barrel, the rupiah’s exchange rate was also factored in. Therefore, there is no issue, and I do not need to revise the APBN,” Purbaya said during an interview at the Directorate General of Taxes (DJP) headquarters in Jakarta on Wednesday (27 May 2026).

He also noted that the bond market remains stable despite rupiah pressure, aided by government measures to stabilise yields through bond buybacks.

“Although the rupiah has weakened, bond yields have fallen. This is due to actions by the government and the Directorate General of Treasury to conduct small-scale buybacks, keeping yields under control,” he said.

Purbaya stated that stability in the bond market is crucial for maintaining foreign investors’ interest in domestic assets.

“As long as the bond market remains stable, foreign investors’ ability to invest in our bonds will be preserved. We have already started seeing foreign capital entering the market,” he added.

The State Treasurer also revealed that the government is preparing further measures to strengthen the rupiah’s exchange rate.

“Future government actions will significantly boost the rupiah,” he added.

Despite the rupiah’s depreciation, the Finance Minister noted that this does not align with Indonesia’s strong economic fundamentals.

“This situation is illogical given the strong fundamentals. Typically, depreciation occurs when there are disruptions to economic fundamentals,” he said.

The rupiah’s exchange rate weakened by 0.20 per cent to Rp17,830 per US dollar.