Rupiah Depreciation Less Severe Than 2014, Airlangga Clarifies Actual Situation

Jakarta, VIVA – Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that the recent depreciation of the rupiah against the US dollar remains relatively low and controlled. At the National Conference on Regional Economic Development (KNPED) 2026, Airlangga explained that the current depreciation is far less severe compared to the rupiah’s depreciation over the past two decades, specifically between 2004 and 2014, when it depreciated by around 40%. He noted that in 2005, domestic inflation surged to 17% due to global oil prices soaring to $140 per barrel. “Over the decade from 2004 to 2014, the rupiah depreciated by 40%, with inflation hitting 17% in 2005 due to oil prices reaching $140 per barrel,” Airlangga said in South Jakarta’s Gatot Subroto area on Monday, 25 May 2026. However, in the subsequent decade from 2014 to 2024, Airlangga acknowledged that rupiah depreciation fell to 30.6%, with inflation dropping to around 3%. “Therefore, current conditions are much better, with inflation at 2.4% and rupiah depreciation at around 5% since early 2026,” he added. “Today, inflation is maintained at 2.4% and rupiah depreciation at 5%, whereas in 2014-2024 it was 30.6% depreciation with 3% inflation. The quality has significantly improved over the past two decades,” Airlangga said. Moreover, Airlangga added that Indonesia’s economic fundamentals are considerably stronger now compared to that period. This is further bolstered by the healthy state of the banking and corporate sectors, despite geopolitical dynamics and global pressures. On Monday morning, 25 May 2026, the rupiah traded at Rp 17,718 per US dollar in the spot market, a 1-point or 0.01% decline from the previous level of Rp 17,717.