Purbaya: Our Economy Isn't as Bad as 1998

INDOLIN | JAKARTA — Finance Minister Purbaya Yudhi Sadewa asked the public not to panic following the weakening of the rupiah against the US dollar, which briefly reached Rp 17,500.

Purbaya assured that Indonesia's economic conditions would not be like the 1998 monetary crisis. He stated that the national economic fundamentals were still strong enough to withstand pressure in the financial markets.

"(The public) doesn't need to panic because our economic foundations are strong. We know very well where the weaknesses are and we can fix them. We won't be as bad as 1998 again, nor will we be that bad again," Purbaya said at the Attorney General's Office in Jakarta on Wednesday, May 13, 2026.

He is confident the government can find the right steps to maintain economic stability and the rupiah exchange rate amid ongoing global pressures.

"We will find the right steps; with a strong economic foundation, it probably won't be too difficult," he said.

Purbaya also assured that Bank Indonesia will continue to implement stabilization measures to maintain the rupiah's movement against the US dollar. The government, he said, will also provide support for these efforts.

"That's the central bank's job. We're taking steps to help strengthen the bond market. We might see if we can intervene to help, but there will definitely be improvements in the future, so don't be afraid," he continued.

On Wednesday morning, the rupiah touched Rp 17,541 per US dollar, weakening 0.07 percent. However, by the close of trading during the day, the rupiah had strengthened to Rp 17,475 per US dollar. (*)