Rupiah Exchange Rate Hits Rp17,800, Purbaya Assures State Budget Remains Safe

Indonesian Finance Minister Purbaya Yudhi Sadewa has reassured the public that the state budget remains stable, even as the rupiah has weakened to Rp 17,800 against the US dollar. Minister Sadewa stated that the Ministry of Finance had already conducted simulations for various economic scenarios, including a global oil price of $100 per barrel, which incorporated calculations for rupiah fluctuations. "We have calculated it. When we simulated a global oil price of $100 per barrel, we also accounted for the rupiah assumption. So, there is no problem, I do not have to recalculate the state budget," Sadewa said on Wednesday, May 27, 2026. He added that the government is actively managing the bond market to maintain stability, even as the rupiah faces pressure. This includes strategic buyback operations to keep bond yields under control. Sadewa emphasized the importance of a stable bond market for attracting foreign investment. "As long as the bond market is controlled, the ability of foreign investors to invest in our bonds will be maintained. We are already starting to see foreign capital entering the market," he noted. The Finance Minister also revealed that the government is preparing further measures to significantly strengthen the rupiah's exchange rate. Despite the current weakening, Minister Sadewa believes the rupiah's movement does not align with Indonesia's strong economic fundamentals. "This is happening while the fundamentals are good; it doesn't make sense. Usually, it weakens when there are disruptions in the economic fundamentals," he commented. The rupiah had weakened by 0.20 percent to Rp 17,830 per US dollar at the time of reporting.

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We have calculated it. When we simulated a global oil price of $100 per barrel, we also accounted for the rupiah assumption. So, there is no problem, I do not have to recalculate the state budget.