Rupiah Falls to IDR 17,500 per US Dollar: Minister Urges Calm, Asserts Indonesian Economy Will Not Replicate 1998 Crisis
JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has called on the public not to panic following the weakening of the Rupiah’s exchange rate, which briefly reached IDR 17,500 per US dollar.
According to him, Indonesia’s current economic conditions are much better compared to the 1998 monetary crisis.
Purbaya believes that the country’s domestic economic fundamentals are still strong enough, so the Rupiah’s weakening is expected to be corrected soon.
“There is no need to panic because the economic foundation is good. We know exactly what the weaknesses are and we can fix them. We will not be as bad as in 1998,” said Purbaya at the Attorney General’s Office complex, South Jakarta, quoted on Friday (16/5/2026).
However, the Ministry of Finance is also preparing measures to help strengthen the stability of the domestic financial market.
One of the government’s current focuses is to maintain the stability of the bond market so that foreign capital does not continue to flow out of Indonesia.
“That is the task of the central bank. But we are taking steps to help strengthen it from the bond market side as well. We may try to see if we can step in to help, but there will definitely be improvements in the future, so don’t be afraid,” he said.
Purbaya explained that the stability of the government bond market is important to maintain investor confidence amid global pressures on financial markets.
According to him, when the bond market is stable, investors will not rush to sell their assets because they are worried about experiencing capital losses due to falling bond prices.
On the contrary, if bond prices recover, investors will potentially obtain capital gains, which can attract foreign capital flows back into the domestic market.
“If the bond market is stable, people will not sell, they will not be afraid of capital losses, and those who are leaving will also decrease. Moreover, if the bonds strengthen later, there is potential for capital gains, which they usually like,” said Purbaya.