Finance Minister Optimistic Rupiah Will Strengthen Thanks to Foreign Capital Inflows

The Indonesian rupiah is poised for a rebound, according to Finance Minister Purbaya Yudhi Sadewa, who expressed strong optimism about its strengthening prospects. This positive outlook is directly linked to a noticeable influx of foreign capital into Indonesia's bond market, a development that signals a growing confidence among international investors in our nation's economic stability.

Minister Sadewa highlighted the government's proactive measures to safeguard the domestic financial market against global headwinds and the rupiah's recent depreciation. These strategic interventions, including active participation in the secondary bond market, have begun to yield positive results. The minister confidently stated, "The rupiah will not stay at this low level for too long. We have seen an improvement in market sentiment and capital inflows. I am confident that more funds will enter in the future, causing the rupiah to strengthen."

These efforts are already bearing fruit. Foreign investors have injected approximately Rp500 billion into the secondary bond market and around Rp1.68 trillion into the primary market. This significant return of foreign capital is a clear indication that investor confidence in Indonesian debt instruments is being restored. The government, through the Directorate General of Debt Management and Risk, is closely monitoring these flows, ensuring continued stability.

Despite the recent fluctuations, the government remains committed to its economic projections. Minister Sadewa affirmed that the assumptions for the rupiah's exchange rate and global oil prices in the 2026 State Budget (APBN) will remain unchanged. This steadfastness underscores the government's belief in the resilience of the Indonesian economy and its ability to navigate current challenges. The message from the Ministry of Finance is clear: Indonesia's economic fundamentals are strong, and the rupiah's appreciation is on the horizon.

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The rupiah will not stay at this low level for too long. We have seen an improvement in market sentiment and capital inflows. I am confident that more funds will enter in the future, causing the rupiah to strengthen.