Why Purbaya is Confident the Rupiah Will Soon Strengthen

Finance Minister Purbaya Yudhi Sadewa is optimistic that the rupiah will soon strengthen following a period of consecutive depreciation. He stated that the key to countering global market pressures lies in ensuring the domestic economy, particularly the Micro, Small, and Medium Enterprises (MSMEs) sector, remains robust. “The rupiah will eventually strengthen. Because people will invest in places where the economy is growing well and socio-political stability is maintained,” he said. Purbaya noted that the government is currently focusing on the sustainability of the MSME sector, following President Prabowo Subianto’s directive to significantly lower loan interest rates for micro-businesses from 22 percent to 8 percent. He urged the public not to worry excessively about external pressures, adding that international rating agency Standard and Poor’s (S&P) has also projected a recovery for the rupiah towards the 17,000 level against the US dollar. Purbaya believes that as global economic conditions stabilise, investors will return to high-growth developing countries like Indonesia, leading to a stronger rupiah in the near future.