US Dollar Hits Rp17,800, Purbaya: 'It Doesn't Make Sense!'

Finance Minister Purbaya Yudhi Sadewa has said the current rupiah exchange rate is illogical, implying it should be stronger than the present level of Rp17,800 per US dollar. ‘Actually, it doesn’t make sense,’ Purbaya said at the Directorate General of Taxes office, Ministry of Finance, on Wednesday, 27 May 2026. Economic fundamentals are evident in growth exceeding 5%, inflation within target, and a controlled current account deficit. However, a significant strengthening of the US dollar due to global uncertainty has weakened the rupiah and many other currencies. Both the government and Bank Indonesia have implemented measures to curb the depreciation, including controlling the supply of US dollars domestically. ‘Further government actions will significantly help the rupiah rise,’ he added. Purbaya noted increasing foreign investor activity in the country, which bodes well for sustaining investor confidence.