In front of the President, Purbaya reported: The rupiah is resistant to shocks, foreign capital is still entering

JAKARTA - Finance Minister Purbaya Yudhi Sadewa reported before President Prabowo Subianto that global pressure had not hit the foundation of Indonesia's financial market.

During a cabinet meeting at the State Palace, Friday, March 13, Purbaya said that every time the rupiah faced a war, it only depreciated an average of 0.3 percent, while foreign capital flows still showed confidence in the domestic market.

Purbaya said Indonesia's five-year credit default swap was still relatively stable. He also said the spread of government securities against US Treasuries only rose slightly, from 240 basis points in January 2025 to 243 basis points today.

"It means that foreigners still trust us. It's only the domestic ones who don't trust, sir. Yes, not only the domestic ones, but also the domestic observers who don't trust," said Purbaya.

He added that capital flows to Indonesia are still positive. According to Purbaya, in March outflow only occurred in SBN of Rp0.7 trillion. At the same time, SRBI recorded an inflow of Rp2.2 trillion, while stocks also still had an inflow of Rp2.2 trillion.

"It means they really believe that our foundation is good. This is if investors are genuine like this, sir, because they put money in," he said.

Purbaya also reported that fiscal and monetary coordination continued to be maintained with Bank Indonesia to support growth. Liquidity is still maintained in the market. Primary money in February grew 14.2 percent, credit in January grew 10 percent, and third-party funds rose 13.5 percent. According to him, these conditions also help keep interest rates down.

In his report, Purbaya also reminded that Indonesia has experience dealing with spikes in oil prices above 100 US dollars per barrel, including in 2008, 2011, and 2022. According to him, with the right fiscal and monetary policies, the impact of global turmoil can be controlled.

"So we don't have to be afraid, sir. The analysts on TikTok, on YouTube who say we are destroyed, they have never seen the data at all," said Purbaya.