US Dollar Breaches Rp 17,500, Purbaya: We Can Fix It

The weakening of the rupiah exchange rate has reached Rp 17,500 per US dollar. In response, Finance Minister Purbaya Yudhi Sadewa has urged the public not to panic. As reported by detikFinance, Purbaya emphasised that this rupiah weakness will be addressed so that it does not plummet sharply as it did in 1998. “(The public) doesn’t need to panic because the economic fundamentals are solid. We know exactly where the weaknesses are and we can fix them. We won’t be as bad as in ’98 again; it won’t be bad at all,” said Purbaya at the Attorney General’s Office in South Jakarta on Wednesday (13/5/2026). Purbaya stated that the Ministry of Finance will assist Bank Indonesia (BI) in finding the right steps to strengthen the rupiah exchange rate. “That’s the central bank’s task. But we’re taking steps to help strengthen it from the bond market side as well. We might see if we can intervene to help or not, but there will definitely be improvements ahead, so don’t be afraid,” he said. Purbaya explained that efforts to help stabilise the rupiah exchange rate involve utilising intervention schemes in the bond market. If the bond market is stable, investors will not rush to sell. “If the bond market is stable, people won’t sell; they won’t fear capital loss, and outflows will decrease. That’s my calculation, especially if the bonds strengthen later, there’s potential for capital gains, which they usually like, so what goes out will flow back in there. We will maintain stability in the bond market and assist the central bank. Of course, we will coordinate with the central bank as well,” he clarified.