Finance Minister Purbaya Yudhi Sadewa admitted he was puzzled and stressed by the significant weakening of the rupiah. In his view, the US dollar exchange rate nearing Rp17,800 was unreasonable. He emphasized that the depreciation occurred despite Indonesia’s economic fundamentals remaining strong.

“Our economy is actually in good condition, and this weakening is happening while the fundamentals are solid. Frankly, it doesn’t make sense. Usually, a currency weakens when there are problems in the fundamentals,” Purbaya said during a meeting at the Directorate General of Taxes (DJP) office in South Jakarta on Wednesday.

When asked whether the government would conduct another stress test on the State Budget (APBN) due to the rupiah’s depreciation trend, Purbaya said it was unnecessary. He explained that the government had previously calculated various scenarios, including simulations assuming global oil prices reached US$100 per barrel along with exchange rate assumptions. He jokingly remarked that he himself was the one feeling stressed.

“I’m the one who’s stressed. No, there’s no need for another stress test because during the US$100 per barrel simulation, we had already factored in the rupiah exchange rate. So there’s no issue, and we don’t need to recalculate the state budget,” Purbaya explained.

Despite the rupiah’s decline, Purbaya noted that yields in Indonesia’s bond market had actually decreased. He attributed this to government intervention in the government securities (SBN) market through treasury operations aimed at maintaining exchange rate stability.

“Even though the rupiah weakened, bond yields have fallen. That happened because of actions taken by the government and our colleagues at the Directorate General of Treasury, who made purchases to keep yields under control,” he said.

According to Purbaya, as long as Indonesia’s bond market remains stable, foreign investors will continue to show interest in investing. He added that the government would introduce further measures to help strengthen the rupiah.

“As long as the bond market stays under control, foreign investors will still be willing to invest, and our bond market will remain stable. We’ve already started to see foreign capital flowing back into our bond market. Going forward, the government will take additional measures that will provide more significant support for the rupiah,” he stated.

For reference, the rupiah exchange rate against the US dollar nearly touched Rp17,800 per US dollar. Based on Bloomberg data, at the close of trading on Tuesday (May 26, 2026), the US dollar strengthened by 0.29% or 52 points to Rp17,795.