Purbaya optimistic rupiah will rebound soon

hartono · May 20, 2026

Purbaya optimistic rupiah will rebound soon

Finance Minister Purbaya Yudhi Sadewa speaking to the press in Jakarta on Tuesday (May 19, 2026). (ANTARA/Imamatul Silfia)

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa expressed optimism that the rupiah would strengthen as the government observed an influx of foreign capital into Indonesia’s bond market.

Purbaya said the government had taken strategic measures, including purchasing bonds on the secondary market, to maintain domestic financial market stability amid global pressures and the weakening rupiah.

"The rupiah will not remain at this low level for too long. We have already seen improving sentiment in the bond market, right? Funds are starting to flow in, and I think more will come in the future, so the rupiah will strengthen," Purbaya said during a press conference in Jakarta on Tuesday (May 19).

The rupiah closed at Rp17,706 per US dollar on Tuesday, weakening from the previous level of Rp17,668.

Purbaya explained that the government had intervened in the bond market since last week to ease pressure and maintain investor confidence. According to him, the measure has begun to lower government bond yields.

He added that foreign investors were beginning to return to the bond market, both in the secondary and primary markets.

In the secondary market, foreign inflows reached around Rp500 billion (US$28.2 million), while in the primary market they totaled approximately Rp1.68 trillion (US$94.77 million). He described the inflow of foreign funds as an early sign of recovering investor confidence in Indonesia’s debt market.

"Our measures to maintain bond market stability have restored foreign investors' confidence in our bonds. They are starting to come in, and dollar inflows are also beginning to return, as expected," he added.

The state treasurer said the government would continue monitoring developments in foreign capital inflows into the bond market.

Furthermore, Purbaya confirmed that the government would not revise the rupiah exchange rate assumption in the 2026 State Budget. The global oil price assumption would also remain at US$100 per barrel.

"I do not need to change anything else. We have already implemented savings measures that we believe are sufficient for the current situation, and the rupiah assumption has already been adjusted during the simulation," he concluded.