Key Points
- Government and BI remain optimistic about Indonesia’s economy despite rupiah weakness, citing solid fiscal foundations and a secure state budget.
- Authorities stabilize the rupiah through bond market intervention and fiscal strategy, aiming to attract foreign investment and sustain growth.
RRi.CO.ID, Jakarta - The government and Bank Indonesia (BI) have affirmed that Indonesia’s economy remains strong, even as the rupiah continues to face pressure against the US dollar.
BI Governor Perry Warjiyo expressed optimism that the rupiah would stabilize, citing ongoing stabilization measures by the government and monetary authorities.
“I’m sure it’s stable,” Perry said after a limited meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta on Monday, May 18, 2026, as quoted by Antara. He noted, however, that the timing of a full rebound has yet to be determined.
Finance Minister Purbaya Yudhi Sadewa stressed that Indonesia’s economic fundamentals remain solid despite global turbulence. He said the state budget is secure enough to support priority programs. “The economy is in good condition. The budget is also sound; there are no problems. The foundations are truly strong,” he said.
Minister Purbaya explained that the government is strengthening communication with markets and investors to maintain confidence. Authorities have intervened in the bond market and increased investment in government bonds to stabilize the rupiah, a move expected to attract foreign capital inflows and bolster the currency.
President Prabowo has instructed the government to unveil its latest fiscal strategy soon, aimed at balancing global challenges with sustaining economic growth.
Minister Purbaya highlighted Indonesia’s resilience, noting that the economy grew 5.6 percent in the first quarter of 2026 despite global uncertainty. “In the first quarter, while the world economy was in turmoil, our economy expanded by 5.6 percent. That’s an extraordinary achievement,” he said.
He emphasized that Indonesia’s current situation differs from the 1997–1998 Asian financial crisis, as reforms and fiscal strengthening were implemented in advance of global pressures. The government urged the public to remain calm and not be swayed by negative sentiment in international financial markets.
At the close of trading on Monday, May 18, 2026, the rupiah weakened from IDR 17,597 to IDR 17,668 per US dollar. BI’s Jakarta Interbank Spot Dollar Rate (JISDOR) benchmark also fell, from IDR 17,496 to IDR 17,666 per US dollar. ***
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