Rupiah Hits Rp18,000 per US Dollar, Purbaya Reveals Root Cause of Garuda Currency Weakening

Jakarta, VIVA – The Rupiah finally touched the level of Rp18,000 per US Dollar on Thursday morning, 4 June 2026. This weakening occurs amidst the dominance of the US Dollar in global markets and increasing investor concerns regarding various external risks.

The Rp18,000 per US Dollar position has become a level closely monitored by market participants, as it marks increasing pressure on the Garuda currency. A day earlier, the Rupiah closed weaker by 127.5 points or 0.71 per cent to the level of Rp17,966 per US Dollar. The government has spoken out regarding this depreciation.

While acknowledging market pressure, the government assesses that the condition is more influenced by sentiment and short-term speculation rather than Indonesia’s economic fundamentals, which currently remain stable.

Previously, Finance Minister Purbaya Yudhi Sadewa stated that the government is prepared to increase coordination with the Financial System Stability Committee (KSSK) if necessary to maintain financial market stability. However, he emphasised that the primary authority in maintaining exchange rate stability remains with Bank Indonesia.

“It is the central bank’s jurisdiction to maintain the exchange rate. Let them handle that first,” Purbaya told reporters at the Parliament Complex, Jakarta, on Wednesday, 3 June 2026. “We will only hold routine meetings as usual. However, if we see that more intensive coordination is required to improve the exchange rate, we will undertake it.”

Government States Rupiah Weakening Triggered by Market Sentiment

Purbaya assessed that the Rupiah’s weakening in recent days does not reflect Indonesia’s true economic fundamentals. According to him, various rumours and speculations circulating in the market have exacerbated sentiment towards the Garuda currency.

One widely discussed issue is the report that the government requested banks to conduct stress tests should the Rupiah breach the Rp18,000 per US Dollar level. Purbaya denied this report, noting that various developing issues have created additional pressure in the financial markets. “If we look at it, this weakening has occurred suddenly within the last one or two days due to various issues in the market,” he said. “There are claims that I ordered banks to perform stress tests if it exceeds Rp18,000, even though I have heard similar issues before. Thus, many issues in the market are creating negative sentiment towards the Rupiah,” he continued.