Rupiah Weakens Again as Purbaya Deems Weakness Illogical Given Strong Fundamentals

JAKARTA - The Indonesian rupiah continued to weaken today, Thursday 28 May 2026. Spot market rupiah rate stood at Rp17,873.50 per US dollar, down 72.5 points (0.41%) at 11:23 WIB. Finance Minister Purbaya Yudhi Sadewa stated that a weakening rupiah should not occur given strong economic fundamentals. ‘It doesn’t make sense; rupiah weakness typically happens when there are disruptions to economic fundamentals,’ he said at the Tax Directorate General (DJP) headquarters in Masjid Salahuddin area on Wednesday (27 May 2026). However, the rupiah exchange rate assumption is already factored into the simulation of global oil prices at $100 per barrel. ‘So there’s no issue; I don’t need to recalculate the national budget,’ he added. This is due to government actions to buy bonds to control yields. ‘As long as the bond market remains controlled, the ability of both foreign and domestic investors to invest in our bonds will be maintained,’ he explained. Purbaya noted foreign capital inflows into Indonesia’s bond market. ‘Further government actions will significantly boost the rupiah’s value,’ he concluded. Additionally, the rupiah spot rate weakened further at the start of trading on Thursday (28 May 2026). At 09:48 WIB, the rupiah depreciated by 69 points (0.39%) to 17,870 per US dollar.