Jakarta, ThedailyID — Purbaya Yudhi Sadewa said predictions about the rupiah weakening to Rp17,800 against the US dollar “do not make sense.”
Purbaya delivered the statement while responding to concerns surrounding pressure on Indonesia’s currency amid global economic uncertainty and financial market volatility.
According to him, Indonesia’s current economic fundamentals remain relatively strong compared to previous crisis periods. Therefore, he believes the rupiah still has stable support despite external pressures affecting global markets.
Purbaya also emphasized that Indonesia currently maintains stronger foreign exchange reserves and more controlled macroeconomic conditions.
He explained that fears regarding a dramatic rupiah collapse often emerge during periods of global uncertainty. However, he warned the public against excessive speculation that could trigger unnecessary panic in financial markets.
The statement came as investors continued monitoring global economic developments, including United States interest rate policies and geopolitical tensions affecting international markets.
Meanwhile, fluctuations in the rupiah exchange rate remain closely linked to movements in the US dollar and investor sentiment toward emerging markets.
Purbaya currently serves as head of Indonesia’s sovereign wealth fund agency, or Badan Pengelola Investasi Daya Anagata Nusantara (Danantara).
He stated that Indonesia’s economic resilience today differs significantly from conditions during the Asian financial crisis in the late 1990s.
According to Purbaya, Indonesia now has stronger banking supervision, healthier fiscal conditions, and more stable economic management.
Market observers also noted that currency movements often reflect short-term global sentiment rather than only domestic economic conditions.
Meanwhile, Bank Indonesia continues monitoring exchange rate stability and broader financial market developments amid ongoing global uncertainty.
The rupiah has recently faced pressure alongside several other emerging market currencies as investors reacted to external economic risks and shifting monetary policies worldwide.
