Purbaya Predicts the Rupiah Will Start to Strengthen Two Weeks Ahead

Minister of Finance Purbaya Yudhi Sadewa. (Photo: ANTARA)

JAKARTA - Finance Minister Purbaya Yudhi Sadewa estimates that the strengthening of the rupiah exchange rate can begin to be seen in about two weeks.

"Don't panic, the rupiah will strengthen in the next 2 weeks," he told the media after the 2026 early year spirit event, Wednesday, January 14.

In addition, Purbaya emphasized that the management of the rupiah exchange rate is the authority of Bank Indonesia as a monetary authority that has the main mandate to maintain exchange rate stability.

"If the rupiah is the central bank's business, its only task is to maintain exchange rate stability. I am waiting for input from the central bank, but what is clear is that the economic foundation will continue to improve in the future," he said.

According to him, there is no reason for market participants, both domestic and foreign, to be worried about converting to the rupiah, especially since foreign capital flows have begun to return, as reflected in the performance of the domestic capital market.

"There is no reason for people to be afraid to convert to rupiah, foreign ones have also entered, you see our capital market, if it is controlled properly, it is not too difficult to return rupiah," he said.

He assessed that the weakening of the rupiah exchange rate, which touched the level of Rp16,800 per US dollar, was temporary and would turn around as the performance of the national economy improved.

Purbaya explained that economic strengthening would encourage the inflow of foreign capital to Indonesia because investors tend to invest in countries with higher growth prospects.

"If the economy improves, the rupiah should strengthen as well, almost automatically, why because foreign capital will enter, they will enter a place that promises higher growth," he said.

He said Indonesia's economic growth in the fourth quarter of 2025 is estimated to be in the range of 5.45 percent and has the potential to increase to close to 6 percent in the quarters in 2026.

According to Purbaya, the current Indonesian economic foundation is strong enough so that it does not need to be feared, in addition to foreign capital flows, funds belonging to Indonesian citizens who have been placed abroad are also expected to return to the country to support business activities.

Purbaya added that national business actors will prefer to invest and do business in the country as the opportunities and competitiveness of the domestic economy increase.

"The rupiah will come in because capital will come here and Indonesian people who are putting their money there will also go abroad. Why? He will do business here because Indonesians can't do business abroad, they are not used to competing there healthily," he explained.