Rupiah Weakens as Purbaya Expects Pressure to Ease in Coming Months

JAKARTA – Finance Minister Purbaya Yudhi Sadewa said the pressure on the rupiah’s exchange rate is likely to ease in the coming months as global geopolitical conditions improve.

Purbaya noted that developments in relations between the United States, Iran, and Israel have shown positive signals that could enhance global security and economic stability.

These conditions are expected to bolster the rupiah, which has recently faced pressure.

“If international reports are any indication, the US, Iran, and Israel are close to reaching an agreement. With global security and situation expected to improve over the next two to three months, the rupiah’s weakening is also projected to end,” Purbaya said at Wisma Danantara on Sunday (31 May 2026).

He explained that the government, in coordination with Bank Indonesia, is maintaining financial sector stability through close collaboration, including keeping the domestic bond market attractive to investors.

Purbaya stressed this is to prevent foreign investors holding government bonds from incurring excessive asset price declines or capital losses.

Furthermore, he expressed optimism that market confidence in the rupiah would recover as global economic conditions improve and national financial system stability is maintained.

“I am confident we will restore confidence in the rupiah, enabling a more stable exchange rate in the future,” Purbaya stated.

As of Friday’s (29 May 2026) spot market close, the rupiah settled at Rp 17,881, down 0.2 per cent from the previous level.

Despite this, Indonesia’s Q1 2026 economic growth reached 5.61 per cent, supported by programmes such as free nutritious meals.

The achievement places Indonesia among Asia’s highest-growing economies, outperforming Malaysia (5.3 per cent) and China (5 per cent).