Indonesia's Purbaya Optimistic Rupiah Will Strengthen as Economy Recovers
Reporter
January 14, 2026 | 01:42 pm
TEMPO.CO, Jakarta - Rupiah closed 0.13 percent weaker yesterday, Tuesday, January 13, 2026, at Rp16,877 per US dollar. But Finance Minister Purbaya Yudhi Sadewa remains optimistic that the rupiah will improve along with domestic economic recovery.
Purbaya said rupiah's movement aligns with the direction of the economy, assuring that "as economic conditions recover, rupiah will almost certainly strengthen."
"But I can't comment on rupiah, as it's the Central Bank's business," the finance minister said in the IDN Media office, Jakarta, Wednesday, January 14, 2026.
Foreign capital inflows are expected to bolster the rupiah, as foreign investors are keen to invest in countries with strong economies.
Meanwhile, Indonesia's economic growth during the fourth quarter of 2025 is estimated at 5.4 percent. Despite this, Purbaya is confident the economy can soar to 6 percent this year. Thus, there's no need to worry for the public and market, as Indonesia has strong foundation, and foreign capital will flow in.
"Since foreign capital will flow into countries that promise higher growth," he said.
The rupiah closed weaker at Rp16,860 per US dollar on January 13, 2026, which Bank Indonesia said depreciated 1.04 percent year-to-date.
Head of the Monetary and Asset Securities Management Department of Bank Indonesia, Erwin G. Hutapea, said several factors influenced the rupiah depreciation. These include the growing geopolitical tensions and concerns about the independence of central banks in several developed countries.
Another factor is the uncertainty about U.S. central bank The Fed's monetary policy, amid growing domestic foreign exchange needs at the beginning of the year.
Nevertheless, this depreciation is considered reasonable as it is in line with the trends of other regional currencies that are also affected by global sentiment. These include the weakening of the South Korean won by 2.46 percent and the Philippine peso by 1.04 percent.
Read: Rupiah Nears 17,000 per US Dollar, Bank Indonesia Speaks Out
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