Indonesian minister dismisses rumors of finance minister's exit amid rupiah slump

State Secretary Minister Prasetyo Hadi has firmly dismissed circulating rumors suggesting an imminent exit for Finance Minister Purbaya Yudhi Sadewa from the Indonesian cabinet. Hadi stated that there are no plans to replace Sadewa, a sentiment echoed by the Finance Minister himself.

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There is no plan to replace him.

"I think it was conveyed by him yesterday evening. There is no plan to replace him," Hadi told reporters at the Presidential Palace complex in Jakarta on Thursday, June 4, 2026. The Gerindra Party politician stressed the current necessity for strong and consistent coordination between the Ministry of Finance, Bank Indonesia, and the Financial Services Authority. He also called for intensive collaboration between the Coordinating Ministry for Economic Affairs and its subordinate ministries.

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There is no plan for that, not yet.

Prasetyo Hadi also explicitly denied any immediate plans by President Prabowo Subianto to conduct a cabinet reshuffle, stating, "There is no plan for that, not yet." The speculation about Purbaya's potential departure gained traction on social media, particularly amid the recent weakening of the Indonesian rupiah against the U.S. dollar. On Thursday morning, the rupiah's value dropped below Rp18,000 per U.S. dollar for the first time in history.

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This is still within our previous calculations.

Despite the currency's decline, Purbaya acknowledged that it would increase the burden on the government's debt. However, he noted that the fixed-rate yields on government bonds remain constant and are "still within our previous calculations." He explained that his ministry had conducted simulations for scenarios involving rising crude oil prices. The macro assumption for the exchange rate in the 2026 State Budget was set at Rp16,500 per U.S. dollar, though Purbaya declined to specify the rupiah level used in emergency simulations, citing concerns that speculation could further weaken the currency. He asserted that fundamentally, the rupiah's value is stronger than its current trading level.

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The adjustment is quite high, but I won't mention it, as [speculating] could trigger further significant weakening of the rupiah. Fundamentally, however, the value of the rupiah sits below this current level, stronger than it is today.