TEMPO.CO, Jakarta - Indonesia’s Finance Minister Purbaya Yudhi Sadewa expressed optimism that the rupiah could strengthen in the near term as foreign capital begins returning to Indonesia’s bond market.
Purbaya said the government has taken several measures to maintain stability in the domestic financial market amid global pressures and the weakening of the rupiah. One of the main steps taken by the government has been the purchase of government bonds (State Securities/SBN) in the secondary market.
“The rupiah will not remain at this level for too long. Earlier, we saw improving sentiment in the bond market, didn’t we? Funds have started flowing in, and I believe more will come in the future, which will support the strengthening of the rupiah,” Purbaya said during the May 2026 edition of the APBN KiTa press conference in Jakarta, as quoted by Antara.
The rupiah closed weaker on Tuesday, slipping 38 points, or 0.22 percent, to Rp17,706 per US dollar from Rp17,668 previously.
Purbaya said the government had entered the bond market since last week to help ease pressure on the financial market and maintain investor confidence. According to him, the intervention has already begun to lower government bond yields.
He explained that foreign investors have started returning to Indonesia’s bond market, both in the secondary and primary markets. In the secondary market, foreign inflows reached around Rp500 billion, while inflows in the primary market totaled approximately Rp1.68 trillion.
Purbaya viewed the renewed inflows as an early indication that investor confidence in Indonesia’s bond market is beginning to recover.
“So, our actions to maintain stability in the bond market have started restoring foreign investor confidence in our bonds. They are beginning to come back, and dollar inflows are starting to enter as they should,” he said.
The state treasurer added that the government continues to closely monitor the development of foreign capital inflows into the bond market. He said he regularly coordinates with Finance Ministry Director General of Financing and Risk Management Suminto to track the movement of incoming funds.
On the other hand, Purbaya assured that the government would not revise the rupiah exchange rate assumption in the 2026 state budget. The government is also maintaining its oil price assumption at US$100 per barrel.
“I don’t need to change anything else. We have already implemented savings measures that we believe are sufficient for the current situation, including scenarios involving shifts in the rupiah during our simulations,” Purbaya said.
Read: Finance Ministry Buys Rp2.22 Trillion in Bonds to Support Rupiah
Click here to get the latest news updates from Tempo on Google News
Finance Ministry Buys Rp2.22 Trillion in Bonds to Support Rupiah
1 jam lalu
Finance Minister Purbaya added that the ministry is allocating around Rp2 trillion per day for the operation.
Prabowo Orders Rp67 Trillion Cut to MBG Budget
4 jam lalu
President Prabowo instructs Minister Purbaya to cut the budget ceiling for free nutritious meal program (MBG) by Rp67 trillion in 2026 state budget.
How Purbaya Deploys Rp2tn in Bond Market to Support Rupiah
18 jam lalu
Purbaya is deploying about Rp2 trillion in government cash daily to stabilize bond prices by absorbing State Securities (SBN) in the secondary market.
Purbaya: Prabowo's Dollar Remarks Meant to Entertain
1 hari lalu
Finance Minister Purbaya defended President Prabowo's controversial remarks on the rupiah slump, calling them an effort to entertain rural people.
Prabowo Convenes Economic Chiefs as Rupiah Plunges
1 hari lalu
President Prabowo held a limited meeting with economic ministers and the Bank Indonesia Governor as rupiah weakened to its lowest level since 1998.
Purbaya Encourages Investors to Buy the Dip as JCI Tumbles
1 hari lalu
Purbaya said the move was driven by short-term sentiment, not weak fundamentals, and that the JCI could rebound within one to two days.
Is Prabowo Right That Villagers Don't Use Dollars?
2 hari lalu
Economist Syafruddin Karimi responded to President Prabowo's claim that villagers do not use dollars as the rupiah weakens Rp 17,500 per US Dollar.
Today's Top 3 News: Nadiem Makarim's Chromebook Case, Hantavirus Outbreak
5 hari lalu
Here is the list of the top 3 news on Tempo English today.
Today's Top 3 News: Indonesians Urged to Repatriate Offshore Assets, MSCI Rebalancing
6 hari lalu
Here is the list of the top 3 news on Tempo English today.
Indonesia Launches Investor Complaint Channel to Boost Investment
7 hari lalu
Minister Purbaya states that the Debottlenecking complaint channel is the Indonesian government's approach to maintain investor trust.
