Indonesian Finance Minister and Central Bank Governor Coordinate to Stabilize Economy Amidst Rupiah Weakness

Indonesia's top economic officials, Finance Minister Purbaya Yudhi Sadewa and Bank Indonesia Governor Perry Warjiyo, are engaged in continuous coordination to stabilize the nation's economy, particularly addressing the recent weakening of the rupiah. They emphasized that fiscal and monetary policies are being closely aligned to support each other and bolster the rupiah's value.

Governor Perry explained that this reinforced coordination involves two key strategies. Firstly, both the central bank and the government are working to enhance the attractiveness of yields on domestic financial instruments to draw foreign capital back into Indonesia. This is crucial as global interest rate hikes have led to capital outflows from emerging markets. Secondly, they are focused on ensuring adequate liquidity in the money and banking markets.

Minister Purbaya Yudhi Sadewa affirmed that Indonesia's economic fundamentals remain strong, citing current data from the State Budget (APBN). He expressed confidence that synchronized policies would restore market confidence in the rupiah, leading to a significant recovery. The rupiah has faced considerable pressure, recently trading at Rp 18,036 against the US dollar on June 5, 2026, reflecting the urgency of these coordinated measures.