“We will start helping (the central bank) tomorrow, maybe by entering the bond market,” Purbaya told reporters at the finance ministry.
He said the intervention would be carried out through the bond stabilization fund (BSF) using available budget resources and could include buybacks.
The rupiah closed at 17,529 per dollar on Tuesday, down 0.66 percent from the previous day.
Purbaya said Bank Indonesia has the capacity to maintain currency stability, but the government will act to prevent bond yields from rising too sharply.
"We are managing it so that foreign [capital] doesn't flow out—or rather, so it flows in as yields improve. This will strengthen the rupiah. We will start intervening tomorrow," he said.
He warned that excessive increases in government bond yields could trigger capital losses for foreign investors and accelerate outflows.
Stabilizing yields, he added, would help keep the domestic financial market steady.
Purbaya said fiscal calculations remain safe despite the rupiah trading above the 2026 budget assumption, noting that simulations had used higher exchange rate scenarios.
On Monday, he said the government would rely on internal funding sources such as cash reserves and excess budget balances (SAL) to stabilize the bond market, while the BSF mechanism involving special mission vehicles and other institutions has not been fully activated.
At a financial stability committee briefing last week, Purbaya emphasized that the BSF is designed to keep the bond market resilient against foreign investor volatility.
Indonesia’s currency has come under pressure amid global market uncertainty, with authorities seeking to reassure investors that fiscal and monetary tools are in place to contain volatility.
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Translator: Rizka Khaerunnisa, Aditya Eko Sigit Wicaksono
Editor: Azis Kurmala
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