Coordinating Minister for Economic Affairs Airlangga Hartarto responded to the rupiah's weakening to a record low of Rp18,250 per US dollar, amid reports of Vice President Gibran Rakabuming Raka's resignation.

Sentiment and fundamentals

Airlangga acknowledged that political sentiment can affect the rupiah's movement, since economic dynamics are determined not only by fundamentals but also by market sentiment. "Of course, in economics there are two factors, fundamentals and sentiment. Sentiment is usually related to the shocks that are around," he said at the Coordinating Ministry for Economic Affairs office in Jakarta on Thursday (12/11/2026).

He noted that Indonesia's capital market was still positive in that day's trading, with the stock index in green territory. But he conceded the rupiah may have been affected by various sentiments. "If we look at the capital market today, it is good, green and rising. But of course we also know about the rupiah, perhaps various sentiment influences are blowing in," he said.

Airlangga asked that exchange-rate developments continue to be watched. In his view, the US dollar's movement cannot be judged on a single day but cumulatively. "We just wait and see how it develops, because the dollar is not a one-day value but a cumulative one," he said.

Impact on energy subsidies

Earlier, Airlangga also gave his view on the impact of the weaker rupiah on the energy subsidy budget, especially fuel. He judged that the rupiah's position and global oil prices through year-end are relatively safe for the government, as long as oil trades around US$92-US$93 a barrel and the rupiah stays at the current level. "If we look at it, it is still going up and down, and as long as global oil is still bought at US$92-93 a barrel and the rupiah is at this level, it is relatively safe until December," he said.

Pushing local-currency transactions

Amid the exchange-rate pressure, Airlangga urged greater use of Local Currency Transactions (LCT) for import needs, including by PT Pertamina (Persero) and PT PLN (Persero). He said strengthening rupiah and renminbi (yuan) transaction infrastructure through a renminbi clearing bank could create an opportunity for currency diversification.

Indonesia already has a clearing facility through Bank of China supported by 12 domestic banks, which he said can be used to expand the use of the yuan in trade and investment with China. Indonesia's exports to China are worth about US$110 billion, and that trade base is seen as helping reduce exchange-rate risk if the renminbi is used.

Airlangga also said Indonesia's credit rating in China is at the AAA level, which opens the way to financing at more competitive interest rates. "So this opportunity should be taken because our underlying is strong," he said.

In his view, currency diversification (mix currency management) is increasingly important amid global interest rates that stay high for longer. "So if we have been using other currencies, their interest is now higher for longer. So this is good for doing mix currency management," he said.

Sources

• Airlangga Buka Suara soal Dolar Tembus Rp18.250 & Mundurnya Gibran — CNBC Indonesia (Robertus Andrianto), 12 November 2026 19:25. https://www.cnbcindonesia.com/market/20261112184718-17-784794/airlangga-buka-suara-soal-dolar-tembus-rp18250-mundurnya-gibran