Indonesian Govt Intervenes in Bond Market as Rupiah Weakens

RRI.CO.ID, Jakarta – The rupiah's exchange rate against the US dollar weakened to 17,800 rupiah as of May 27. Responding to this situation, Indonesia's Finance Minister, Purbaya Yudhi Sadewa, who spoke after Eid al-Adha prayers in Jakarta on Tuesday, May 27, 2026, stated that the government has taken various intervention measures to ensure currency volatility remains under control.

One of these measures involves bond market intervention. He affirmed that the current movement of the rupiah does not disrupt bond market stability because bond yields have actually decreased.

“Basically, even though the rupiah is weakening, bond yields are falling. So as long as the bond market remains under control, the willingness of investors, primarily foreign investors, but also domestic ones, to invest in our bonds will be maintained.”

Because the bond market remains stable, Purbaya feels positive about future investments. He believes both local and foreign investors will continue to show strong interest.

Furthermore, Minister Purbaya, confirmed that the 2026 State Budget is in a secure position and does not require a stress test or recalculation. He assessed that the current rupiah fluctuations do not align with Indonesia’s economic fundamentals, which he believes remain very strong.

“This happens when the fundamentals are strong, which actually doesn’t make sense. A weakening usually occurs when there are disruptions in the fundamentals. So just let it be, take it easy.”

The Indonesian government issued a new regulation starting June 1 that requires exporters to deposit all export proceeds in US dollars into domestic banks for 12 months. This policy aims to increase the supply of US dollars in Indonesia so that the rupiah can regain its strength. In addition, Bank Indonesia raised its benchmark interest rate to 5.25 percent to attract foreign investors and protect the rupiah.