Rupiah Hits Rp17,800 per US Dollar as Purbaya Says Weakness 'Illogical' Given Strong Fundamentals

Finance Minister Purbaya Yudhi Sadewa confirmed that the rupiah’s depreciation to Rp17,800 per US dollar does not necessitate a recalculation of the state budget (APBN). He stated that the Finance Ministry had previously run simulations for various economic scenarios, including assuming global oil prices at $100 per barrel. “We’ve already accounted for this. During the simulations when global oil prices were at $100 per barrel, the rupiah’s exchange rate was factored in. So there’s no issue; I don’t need to recalculate the state budget,” he said on Wednesday, 27 May 2026.

Purbaya noted that the bond market remains stable despite rupiah pressures, aided by government stabilisation measures including bond buybacks to maintain yields. “Even with rupiah weakness, bond yields have fallen due to government actions, including Treasury bond buybacks to keep yields under control,” he said.

He added that bond market stability is crucial for maintaining foreign investor interest in domestic assets. “As long as the bond market remains stable, foreign investors’ ability to invest in our bonds will be sustained. We’ve already started seeing foreign capital entering the market,” he added.

Purbaya also revealed that the government is preparing further measures to significantly strengthen the rupiah. “Future government actions will help significantly boost the rupiah,” he said.

Despite the rupiah’s weakness, the finance minister noted that this does not align with Indonesia’s strong economic fundamentals. “This is illogical given the strong fundamentals. Typically, weakness occurs when there are disruptions to the economic fundamentals,” he said.

The rupiah weakened by 0.2% to reach Rp17,830 per US dollar.