Mutia Yuantisya, Jakarta – Indonesian Finance Minister Purbaya Yudhi Sadewa believes that the rupiah exchange rate has room to strengthen to around Rp15,000 per US dollar if it moves in line with economic fundamentals and the strengthening of regional currencies.
"I cannot speak on behalf of the central bank, but if I were in their position, that level would not be difficult to achieve," Purbaya said at the Indonesia Economic Summit at the Shangri-La Hotel Jakarta, Tuesday, February 3, 2026.
Purbaya emphasized that exchange rate management and stability are entirely within the authority of Bank Indonesia as the monetary authority. He said the rupiah's current position is relatively different compared to other currencies in the region, which have tended to strengthen.
Bank Indonesia's Jakarta Interbank Spot Dollar Rate (JISDOR) strengthened to Rp16,777 per US dollar on Tuesday, February 3, 2026, from Rp16,800 per US dollar previously. However, based on the actual rupiah exchange rate throughout 2025, it averaged Rp16,475 per US dollar.
According to Purbaya, the government continues to coordinate with Bank Indonesia and other financial authorities through the Financial System Stability Committee (KSSK) to respond to exchange rate dynamics that could potentially put pressure on the economy. This coordination, he said, serves as a mitigation mechanism if rupiah movements are deemed to pose a risk to economic stability.
He cited the example of when the rupiah exchange rate approached Rp17,000 per US dollar, the KSSK immediately held a meeting to ensure the rupiah did not breach that psychological barrier. According to Purbaya, although fundamentally, that level would not necessarily trigger a crisis, a significant weakening could potentially raise public concern.
Purbaya explained that fundamentally, the government assesses the rupiah exchange rate, which aligns with the State Budget assumptions, at around Rp16,500 per US dollar.
He noted that Indonesia experienced capital inflows in October, November, December, and January. In theory, Purbaya believes that net capital inflows should encourage a strengthening of the rupiah exchange rate.
However, he stated he didn't know why the rupiah was weakening amidst these conditions. He suggested that questions regarding this matter be directed to Bank Indonesia. This is because the weakening is likely part of the monetary authority's policy to maintain stability.