Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa said he is confident the rupiah will rebound against the US dollar within the next two weeks.

“There is no need to panic. The rupiah will strengthen in the next two weeks,” Sadewa told reporters here on Wednesday.

He said he is still awaiting input from Bank Indonesia, the monetary authority responsible for maintaining rupiah stability.

At the same time, Sadewa said the government continues to improve national economic performance to support higher growth. He expressed optimism that Indonesia’s economy could expand by six percent in 2026.

“The economic fundamentals will continue to improve. There is no reason for people to be afraid to hold rupiah. Foreign investors have also entered, as reflected in our capital market. If managed properly, restoring the rupiah is not too difficult,” he said.

The rupiah strengthened at the opening of trading in Jakarta on Wednesday, gaining seven points, or 0.04 percent, to Rp16,870 per US dollar from Rp16,877 previously.

Permata Bank chief economist Josua Pardede said the rupiah could face pressure amid US President Donald Trump’s threat to impose tariffs on countries trading with Iran.

“This announcement has raised trade tensions between the United States and China, especially as China is a major importer of Iranian oil,” he told ANTARA.

Quoting Anadolu, Trump announced plans to impose a 25 percent tariff on countries that continue trading with Iran, stressing that the decision is final and will be implemented soon, although further details have yet to be disclosed.

Additional sentiment came from US inflation data for December 2025, which showed headline inflation steady at 2.7 percent year on year, in line with expectations. Core inflation was unchanged at 2.6 percent year on year, below the market forecast of 2.7 percent.

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Translator: Imamatul, Kenzu
Editor: Primayanti
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