Rupiah depreciation since Iran conflict more resilient than other currencies

Jakarta — Indonesia’s Finance Minister Purbaya Yudhi Sadewa has stated that the rupiah’s depreciation since the US-Israel-Iran conflict erupted remains significantly more moderate compared to other regional currencies, reflecting Indonesia’s external resilience and strong fiscal-monetary coordination.

Addressing concerns raised on social media regarding the rupiah’s weakness, the minister noted that the currency has depreciated by only 0.3 per cent month-to-date since the conflict began, far outperforming major peer currencies in the region.

In comparison, Malaysia’s ringgit has depreciated by 0.5 per cent and Thailand’s baht by 1.6 per cent over the same period.

“This reflects Indonesia’s external resilience and strong fiscal-monetary coordination,” Sadewa said at a press briefing in Jakarta on Wednesday.

The minister called upon the public to fairly assess the rupiah’s position relative to other currencies and to understand the actual state of Indonesia’s currency performance. He expressed confidence that Indonesia’s sustained positive economic fundamentals would continue to support domestic capital market strength, particularly in equity investments.

“If the economic fundamentals remain strong, stock prices will gradually recover to better levels,” he stated.

At market opening on Wednesday, the rupiah strengthened by 12 points or 0.07 per cent to Rp16,851 per US dollar, compared to the previous close of Rp16,863 per dollar.

However, Sadewa acknowledged that the ongoing conflict would continue to pressure the rupiah. Based on current factors, the rupiah is expected to trade within the range of Rp16,800 to Rp16,950 per US dollar.