February 3, 2026 | 08:11 pm
TEMPO.CO, Jakarta – Finance Minister Purbaya Yudhi Sadewa said the rupiah’s current exchange rate does not fully reflect Indonesia’s economic fundamentals and remains undervalued, arguing that a stronger level of around Rp15,000 per US dollar should be achievable.
“I previously mentioned Rp16,500, but that seems to have fallen short of expectations. At this point, moving toward Rp15,000 per US dollar should not be very difficult,” Purbaya said at the Indonesia Economic Summit held at the Shangri-La Hotel in Jakarta on Tuesday, February 3, 2026.
Purbaya clarified that his remarks reflected a personal assessment rather than an official position of Bank Indonesia, which is responsible for exchange rate policy. He said the rupiah still has room to strengthen, particularly as regional currencies have shown a broadly positive trend.
He pointed to the Malaysian ringgit, Singapore dollar, Thai baht, and Vietnamese dong, all of which have recorded gains in recent months. In comparison, Purbaya said, the rupiah appears relatively out of sync with its regional peers.
“The alignment of the rupiah with regional currencies falls under the authority of the central bank,” he said, emphasizing that exchange rate management is not within the finance ministry’s mandate.
Addressing speculation that the rupiah’s weakness reflects declining investor confidence in the current government, Purbaya rejected that view, calling it an incomplete assessment.
He noted that Indonesia recorded capital inflows in October, November, December, and January, which under normal conditions should support a stronger currency.
“In theory, net capital inflows should push the exchange rate higher,” he said.
However, Purbaya acknowledged that the rupiah continued to weaken despite these inflows and said he could not explain the discrepancy.
He suggested that further clarification should come from Bank Indonesia, adding that the movement may be linked to monetary policy considerations aimed at maintaining broader financial stability.
Read: IDX Board Appoints Jeffrey Hendrik as Acting President Director
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