Video: Capital to Strengthen the Rupiah and Ensure a Healthy State Budget Amid Iran War Turmoil
CNBC Indonesia, in collaboration with Bank Indonesia, presents the Central Banking Forum 2026 with the theme “Indonesia’s Economic Resilience in Facing Global Exchange Rate Volatility”. The forum thoroughly examines Indonesia’s responses and those of monetary authorities to global challenges, while strengthening national economic resilience and maintaining market confidence and positive perspectives.
Head of the Monetary and Securities Asset Management Department at Bank Indonesia, Erwin Gunawan Hutapea, reaffirmed the Rupiah exchange rate’s good condition. From the inflation side, it is maintained at 3.8% with a still strong trade balance and foreign exchange reserves figures that are sufficient.
Meanwhile, Director of Strategic Economic Stability at the Directorate General of Fiscal Balance of the Republic of Indonesia Ministry of Finance, Noor Faisal Achmad, assured that the state budget is healthy to support Indonesia’s economic growth, backed by tax receipts growing 10.5% at the beginning of the year even though Q1-2026 spending surged.
The Ministry of Finance also assured that the state budget is still capable of financing the energy sector amid the global energy price surge, while in state debt management amid rising government bond yields, the Ministry of Finance has prudent and efficient strategies.
On the other hand, BCA’s Chief Economist, David Sumual, mentioned that the exchange rate weakening experienced by the majority of currencies, including the Rupiah, is due to the market’s short-term focus primarily related to oil prices. This has led foreign investors to carry out capital outflows in equities and government bonds, although in the SRBI it recorded capital inflows, which could serve as a buffer for foreign reserves and the Rupiah.
In addition, long-term improvement measures are needed, such as those carried out by China in developing renewable energy sources to reduce fossil fuels.
Meanwhile, Executive Director of the Center of Reform on Economics (CORE), Mohammad Faisal, provided views on the economic indicators that the government and monetary authorities must pay attention to amid pressure on the Rupiah exchange rate and 2026 global economic turmoil related to the real sector conditions to fiscal and financial conditions.
Compared to the 1998 crisis or Covid-19, one of the real sector conditions amid the 2026 US vs Iran war that must be maintained is the middle-class purchasing power, which has experienced pressure. In addition, fiscal governance must also be considered to maintain investor confidence in Indonesia.
For more details, watch the dialogue with Syarifah Rahma and Head of the Monetary and Securities Asset Management Department at Bank Indonesia, Erwin Gunawan Hutapea, together with Director of Strategic Economic Stability at the Directorate General of Fiscal Balance of the Republic of Indonesia Ministry of Finance, Noor Faisal Achmad, and BCA’s Chief Economist, David Sumual, as well as Executive Director of the Center of Reform on Economics (CORE), Mohammad Faisal, in the Central Banking Forum 2026, CNBC Indonesia (Tuesday, 14/04/2026).