Purbaya: No Worries Over Rupiah at Rp17,660 per USD

TheIndonesia.co - Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, has urged the public not to worry about the weakening rupiah against the US dollar, insisting that the government is continuing efforts to strengthen the country’s economy.

Speaking at the Presidential Palace complex in Jakarta on Monday (18 May), Purbaya said Indonesia’s economic performance remained strong despite ongoing global uncertainty.

“So, there is no need to worry. We are genuinely improving the economy, and this has already started to show in the fourth quarter and the first quarter of this year. Growth is accelerating, and we will continue to maintain it so it can grow even faster,” he said.

The rupiah weakened to Rp17,660 against the US dollar on Monday, raising concerns over the potential impact on prices and household spending.

However, Purbaya highlighted Indonesia’s first-quarter economic growth of 5.6 per cent in 2026, describing it as a significant achievement amid global economic turbulence.

“That is an extraordinary achievement because the President’s reform policies were implemented before the global negative shock occurred. The development strategy has been very good,” he said.

Purbaya also stressed that Indonesia’s economic fundamentals and fiscal condition remained stable despite pressure on the currency.

“There is no need to be afraid. Our economic fundamentals are strong, our fiscal position is strong,” he said, adding that the government’s state budget strategy had been misunderstood by some international observers.

He argued that Indonesia’s growth was not driven solely by government spending, but also by increased private sector activity.

“Our strategy is not only government expenditure. We are also activating the private sector. That is why economic growth reached 5.6 per cent in the first quarter because the private sector has started moving as well,” he added.

Remarks on Villagers and the Dollar
Purbaya also responded to recent remarks made by President Prabowo Subianto, who joked that villagers do not use US dollars.

According to Purbaya, the statement was made in a light-hearted context during an event in a rural area and should not be interpreted literally.

“He was simply entertaining the people there. The context was a rural audience, so it was fine to say that,” Purbaya explained.

He rejected suggestions that the remarks reflected a lack of understanding about the rupiah’s depreciation.

“It does not mean the President does not understand the rupiah issue. He understands it very well. The context was different because he was speaking to villagers,” he said.

When asked whether the weakening rupiah would still affect rural communities through rising prices, Purbaya declined to elaborate further and criticised the way the comments had spread widely online.