Speaking to reporters at the Parliament Complex in Jakarta, Wednesday (June 3), Purbaya underscored his respect for Bank Indonesia’s (BI) role as the primary authority responsible for the exchange rate.
“It is the central bank's jurisdiction to maintain the exchange rate. Let them do that first," Purbaya said.
“We will just hold regular meetings as normal. But if we see that (intensive) coordination needed to improve the exchange rate, we will do so,” he added.
The statement came as the rupiah closed down 127.5 points, or 0.71 percent, slipping to Rp17,966 per US dollar on Wednesday afternoon.
Despite the decline, Purbaya attributed the rupiah’s recent depreciation to volatile market sentiment and speculative rumors rather than weak national economic fundamentals.
In particular, the Finance Minister dismissed reports alleging he had ordered commercial banks to conduct stress tests simulating a scenario where the rupiah breaches the psychological threshold of Rp18,000 per US dollar.
"If we look at it, the weakening suddenly occurred in the past day or two, due to various issues in the market," Purbaya explained.
"Some said I ordered banks to conduct stress tests if it exceeded Rp18,000, even though I have heard similar issues before. So, many issues in the market are creating negative sentiment towards the rupiah,” he said.
Shifting focus away from short-term market fluctuations, he said that the Finance Ministry would remain concentrated on fortifying economic fundamentals to stimulate growth.
"So that the economy continues to grow faster, faster, faster. Because ultimately, we believe the rupiah will be determined by its economic foundations. That is my focus," he added.
Meanwhile, Bank Indonesia reaffirmed its determination to build stronger synergy with the government and utilizing structural measures to protect the rupiah. As part of its defense strategy, BI enacted a strict cash threshold for foreign exchange purchases effective June 2, 2026.
Under the new rule, foreign currency purchases against the rupiah that lack underlying assets—such as invoices for imports or debt service—are capped at US$25,000 per transaction per month.
The policy aims to curb speculative trading that exacerbates volatility.
In addition, the central bank is expanding its Local Currency Transaction (LCT) scheme. By promoting the use of local currencies in bilateral trade agreements, BI aims to systematically reduce Indonesia's reliance on the US dollar and insulate the domestic economy from external global shocks.
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Translator: Imamatul Silfia, Yashinta Difa
Editor: M Razi Rahman
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