The weakening of the rupiah against the US dollar has sparked public concern, with some beginning to raise fears of an economic crisis, especially as the dollar nearly touched the Rp17,000 level. Responding to these worries, Finance Minister Purbaya Yudhi Sadewa stated that the depreciation of the rupiah does not warrant concerns about triggering an economic crisis, as quoted on Friday (January 23, 2026).

He explained that the pressure on the rupiah stems from rising global uncertainty, driven by geopolitical tensions and the direction of US interest rates or the federal funds rate. Meanwhile, Indonesia’s economic fundamentals remain strong.

This is reflected in economic growth that continues to exceed 5%, inflation that is well-contained around 3%, and a current account deficit that remains at a manageable level.

According to Purbaya, Indonesia’s fundamentals are still very solid, and government policies are well aligned with the monetary authority, allowing economic momentum to strengthen further, attract investment inflows, support a stronger rupiah, and lift the capital market.

He also addressed market speculation regarding the nomination of Thomas Djiwandono as Deputy Governor of Bank Indonesia, emphasizing that the rupiah had weakened prior to the emergence of that issue and therefore was not driven by it.

Purbaya stressed that the key priority is the shared commitment of the central bank, the Ministry of Finance, and all elements of the government to maintain exchange rate stability.

Over the past two days, the rupiah has shown signs of recovery, strengthening to around Rp16,800 per US dollar. He noted that net capital inflows have been recorded from October through January, and with the central bank’s new strategy, reinforcing the rupiah is considered well within reach.