Rupiah Weakens to Rp17,500 per US Dollar, Finance Minister Purbaya: We Won't Be as Bad as the 1998 Crisis
Finance Minister Purbaya Yudha Sadewa has asked the public not to panic despite the rupiah exchange rate briefly reaching Rp17,500 per US dollar. The government and the central bank, he said, are continuously monitoring the financial markets and the bond market.
“No need to panic, because the economic fundamentals are good. We know exactly where the weaknesses are and we can fix them,” said Purbaya in Jakarta on Wednesday (13/5/2026).
He emphasised that Indonesia’s current economic conditions differ from the 1998 crisis. According to him, the government still has room to maintain market stability and the exchange rate.
“We won’t be as bad as in 1998 again. We will take the right steps,” he asserted.
On Tuesday’s trading, the rupiah closed at Rp17,529 per US dollar after briefly touching the Rp17,500 level, marking one of the weakest points in history. However, on Wednesday’s trading, the rupiah began to strengthen and closed around Rp17,476 per US dollar.
The rupiah’s weakening was triggered by foreign funds exiting the domestic market and rising global uncertainties. Market sentiment was also influenced by the latest MSCI evaluation of Indonesia’s stock market.
In the MSCI Global Standard Indexes evaluation, no Indonesian stocks were added to the index, while six issuers were removed from the list. Economist from Brawijaya University, Noval Adib, assessed that the evaluation results were still somewhat relieving because Indonesia remained in the emerging market category.
“By remaining in the emerging market category, MSCI signals that Indonesia’s capital market is still worthy of investment for global investors,” said Noval.
According to him, this position is important for maintaining foreign investor confidence amid pressures in the global financial markets. Purbaya also stressed that rupiah stability remains the central bank’s authority. However, the government will assist in maintaining market conditions, particularly the bond market.
“We don’t directly enter the bond market. But we maintain the stability of the bond market,” he said.
According to him, the government has asked relevant agencies, including the Directorate General of Financing and Risk Management of the Ministry of Finance, to prepare market stabilisation measures. “There are steps. I am instructing them to step in and take action,” revealed Purbaya.
He added that the bond market conditions are beginning to show improvement and foreign investors are starting to return to the domestic market. Nevertheless, the government will continue to monitor market developments over the next few months.
In addition to the rupiah issue, Purbaya also responded to a letter from the Chinese Chamber of Commerce highlighting investment barriers in Indonesia. He emphasised that the government will not interfere with investors as long as they conduct business in accordance with Indonesian law.
“We won’t disrupt anyone’s business here, as long as they do it legally. If it’s illegal, we will take action,” he said.