TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa said the current depreciation of the rupiah is inappropriate, as the currency weakened past 17,800 per US dollar at the close of trading on Wednesday, May 27, 2026.
Purbaya said he was puzzled by the rupiah’s weakness despite what he described as still-strong economic fundamentals.
“Actually, it doesn’t make sense. It usually weakens when there are disruptions in the economic fundamentals,” he said after attending Eid al-Adha prayers at the Directorate General of Taxation headquarters in Jakarta on the same day.
However, he stressed that he is not worried about the situation and said the government does not need to revise assumptions in the 2026 State Budget (APBN), even as the rupiah moves further from the projected range. He noted that the impact of currency depreciation had already been accounted for in the budget, particularly when global oil prices surged to US$100 per barrel amid rising tensions between the United States and Iran.
The weakening rupiah has also put pressure on government bonds, but Purbaya said yields on State Securities have stabilized after intervention by the Ministry of Finance. He added that the measures have helped attract foreign capital back into Indonesia’s financial markets.
The 2026 State Budget assumes an exchange rate of 16,500 rupiah per US dollar, with a tolerance range of 16,800. The current level has moved significantly beyond that projection.
Previously, PT Traze Andalan Futures Director Ibrahim Assuabi said the rupiah could remain under pressure during the long holiday period due to persistent external risks.
“Bank Indonesia cannot intervene in the domestic market, bonds, and state debt securities, so only in the international market. This will cause the rupiah to depreciate again,” he said on Tuesday, May 26, 2026.
He added that ongoing geopolitical tensions in the Middle East and rising global oil prices continue to weigh on the currency, and predicted the rupiah could weaken further toward 18,000 per US dollar this week.
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