Purbaya Claims Rupiah Breaks Rp18 Thousand, Has Not Affected Debt Payments

Minister of Finance Purbaya Yudhi Sadewa / ANTARA / Imamatul Silfia / aa.

JAKARTA - Finance Minister Purbaya Yudhi Sadewa said that the rupiah exchange rate that broke through the Rp18,000 level has not disrupted the government's ability to pay its debts.

He explained that government debt coupons are fixed or fixed rate, so changes in exchange rates do not have much effect.

However, Purbaya admitted that the weakening of the rupiah exchange rate had an impact on the payment of interest on government debt denominated in foreign currencies (foreign exchange).

However, Purbaya said, the movement of the rupiah is currently still within the government's calculations.

"The coupon is constant. If the debt payment is through the coupon. It's just that when the rupiah weakens, it increases the rupiah payment," said Purbaya as quoted by ANTARA, Thursday, June 4.

The government has set the rupiah exchange rate assumption at Rp16,500 per US dollar in the State Budget (APBN).

At a time when the price of fuel oil (BBM) soared due to geopolitical conflicts, his party has simulated the rupiah exchange rate.

He did not detail the simulation scheme that had been carried out. Purbaya only said that the fundamentals of the rupiah were still below the current level of Rp18,000 per US dollar.

"Basically, the fundamentals of the rupiah are below the current level. Stronger than now," he said.

Separately, Bank Indonesia (BI) ensures that it will continue to intervene in the foreign exchange market with a higher intensity amid the weakening of the rupiah exchange rate which continues to the level of Rp18,000 per US dollar.

BI Senior Deputy Governor Destry Damayanti said the central bank also strengthened the interest rate structure of pro-market monetary instruments to remain attractive for capital inflows into domestic asset instruments.

"Continuous intervention will continue to be carried out consistently through Non-Deliverable Forward (NDF) transactions in the offshore market, spot transactions and Domestic Non-Deliverable Forward (DNDF) in the domestic market, accompanied by the purchase of SBN in the secondary market," said Destry.