January 20, 2026 | 12:37 am
TEMPO.CO, Jakarta - Indonesia’s Finance Minister Purbaya Yudhi Sadewa expressed confidence that the rupiah will regain strength over time, despite its recent decline against the US dollar.
“So we just have to wait for the rupiah to strengthen,” Purbaya said at the House of Representatives (DPR) Complex in Jakarta on Monday, January 19, 2026.
The remarks came after the rupiah weakened by 68 points in Monday’s trading session, closing at Rp 16,955 per US dollar, down from Rp 16,896.
Ibrahim Assuaibi, Director of PT Traze Andalan Futures, forecast that the rupiah will likely fluctuate between Rp 16,950 and Rp 16,980 per US dollar in Tuesday’s trading on January 20, 2026.
Purbaya emphasized that the currency’s movement reflects underlying economic fundamentals. He also noted that Indonesia’s Composite Stock Price Index (IHSG) reached a record high of 9,133.87 in Monday’s afternoon session.
According to the minister, this signals foreign capital inflows, as the index’s rise cannot be solely attributed to domestic investors.
Addressing market speculation that the rupiah’s decline was linked to Deputy Finance Minister Thomas Aquinas Muliatna Djiwandono being named a candidate for Deputy Governor of Bank Indonesia—raising concerns about the central bank’s independence—Purbaya dismissed the notion.
“I don’t think so. Once awareness returns, the rupiah will immediately strengthen, because we are committed to maintaining our economic foundation,” he said.
To support this foundation, Purbaya assured that liquidity in the financial system will remain sufficient. He also highlighted efforts to accelerate government spending programs early this year to stimulate the real sector and pledged to remove obstacles for entrepreneurs.
“We will enhance supply, demand, investment, monetary policy, and fiscal policy. We will implement everything,” he said.
With these measures, Purbaya remains optimistic that Indonesia can achieve its economic growth target of 6 percent for 2026.
Read: Analyst: Rupiah May See Limited Gains Amid US Tariff Risks
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