Rupiah Weakens, BI Governor and Coordinating Minister Meet Prabowo
Several economic officials met with President Prabowo Subianto amid the weakening of the rupiah against the US dollar on Tuesday, 5 May 2026. Officials present at the Presidential Palace in Jakarta included Bank Indonesia Governor Perry Warjiyo and Coordinating Minister for the Economy Airlangga Hartarto.
The rupiah fell to Rp17,424 per US dollar at the close of trading on Tuesday. According to Perry, the discussion with Prabowo included addressing this situation. “We discussed it and received directions from the President regarding the exchange rate,” he said after the meeting.
Perry claimed that the rupiah is currently experiencing undervaluation, a condition where a currency has an exchange rate lower than it should. He is confident that the rupiah will stabilise and strengthen in the future.
According to him, Indonesia’s economic fundamentals are currently very strong. Perry also highlighted the country’s economic growth of 5.61 per cent. “Inflation is low, credit growth is high, and foreign exchange reserves are strong. These are fundamentals that indicate the rupiah should stabilise and tend to strengthen,” he stated.
Perry also explained the reasons why the rupiah exchange rate is under pressure. He assessed that there are two influencing factors: global factors and seasonal factors.
The global factors affecting the weakening of the rupiah exchange rate, according to Perry, include high oil prices, rising US interest rates, and a strengthening dollar. Additionally, there is capital flight from emerging markets, including Indonesia.
Meanwhile, the seasonal factors include high demand for dollars in April, May, and June. “There is repatriation of dividends, debt payments, and also for Hajj pilgrims. But the rupiah is undervalued and will stabilise and tend to strengthen in the future,” said Perry.
Prabowo summoned economic sector officials to the Palace on Tuesday. In addition to Perry and Airlangga, attendees included Finance Minister Purbaya Yudhi Sadewa, Coordinating Minister for Food Affairs Zulkifli Hasan, Otoritas Jasa Keuangan Commissioner Chairman Friderica Widyasari Dewi, and Indonesia Deposit Insurance Corporation Chairman Anggito Abimanyu.