Ilona Estherina, Jakarta – Finance Minister Purbaya Yudhi Sadewa stated that the rupiah exchange rate had already begun weakening before Deputy Finance Minister Thomas Djiwandono was nominated as Deputy Governor of Bank Indonesia. The rupiah's exchange rate has recently edged toward Rp17,000 per US dollar.

Purbaya's statement also dismissed assumptions that the nomination of Thomas, who is also the nephew of President Prabowo Subianto, served as a catalyst for the currency's decline. "If you look at the data, the rupiah had weakened before Mr. Thomas was appointed, and that trend simply continued; therefore, it is not the issue," he said.

He emphasized that the most critical factor at the moment is that Bank Indonesia and the government have agreed to maintain exchange rate stability. "We believe that the central bank possesses a suitable strategy to manage the exchange rate," he noted.

Previously, BI Governor Perry Warjiyo mentioned that the rupiah's slide toward 17,000 per US dollar was influenced in part by domestic conditions. Market perception regarding the BI Deputy Governor nomination process also exerted pressure on the Indonesian currency.

"It is the market's perception of fiscal conditions and the Deputy Governor nomination process," he stated in a press conference following the Board of Governors meeting on Wednesday, January 21, 2026.

Nevertheless, he stressed that the nomination process complies with the law and does not interfere with the duties or authority of Bank Indonesia.

LPEM FEB UI economist Teuku Riefky predicted that Thomas Djiwandono's nomination could further dampen market sentiment. He expressed concerns that the current policy-making process leads investors to perceive the Indonesian economy as unhealthy, noting that economic indicators continue to deteriorate despite Indonesia not being in a crisis. This could potentially lead to the rupiah breaking the psychological barrier of Rp 17,000 per US dollar.

The rupiah's exchange rate dropped to a record low of Rp 16,956 per US dollar at the close of trading on Wednesday, January 21, 2026. At the close of trading on Thursday, January 22, 2026, the rupiah strengthened by 0.24 percent, remaining at Rp 16,956 per US dollar.

– Anastasya Lavenia contributed to the report.

Source: https://en.tempo.co/read/2082354/rupiah-weakened-before-bi-deputy-nomination-purbaya-say