Jakarta. Finance Minister Purbaya Yudhi Sadewa said he was “stressed” by the rupiah’s sharp depreciation after the currency briefly weakened to around Rp 17,848 against the US dollar, although he insisted the government remains confident in the country’s economic fundamentals.

“Yeah, I’m stressed,” Purbaya joked to reporters after attending Eid al-Adha prayers at the Finance Ministry’s Tax Directorate General headquarters in South Jakarta on Wednesday.

Despite the lighthearted remark, Purbaya said the government had already factored exchange-rate pressure into its state budget calculations and does not see the current volatility as requiring a revision to the fiscal outlook.

“We’ve already calculated it. When we ran simulations with global oil prices at $100 per barrel, the rupiah assumption was also included,” he said.

“So there’s no problem. I don’t need to recalculate the state budget.”

The rupiah has come under pressure in recent weeks amid global market uncertainty and a stronger US dollar, raising concerns about imported inflation and Indonesia’s fiscal position. However, Purbaya argued the currency’s weakness does not reflect the domestic economy’s underlying condition.

“The economy is actually good. This is happening while the fundamentals are strong,” he said. “Usually a currency weakens when there is a disruption in economic fundamentals. That’s why this situation doesn’t really make sense.”

Purbaya said Indonesia is still in the early stages of transitioning from slower growth toward faster economic expansion, adding that the benefits of the recovery would take time to spread evenly across society.

“We’re just beginning to recover from slower growth toward faster growth. It takes time for the impact to spread evenly throughout the economy,” he said.

The finance minister also sought to reassure investors by pointing to stability in Indonesia’s bond market. He said that government bond yields had actually declined despite the rupiah’s depreciation.

Indonesia’s benchmark 10-year government bond yield rose slightly to 6.71% on May 26, up 0.01 percentage point from the previous session. However, yields were still down 0.11 percentage point over the past month and 0.10 percentage point lower than a year earlier, according to over-the-counter interbank quotations for the sovereign debt maturity.

“Even though the rupiah weakened, bond yields have fallen,” he said.

According to Purbaya, the government, through the Treasury Directorate General, has been purchasing bonds in the market to help contain yield increases and maintain investor confidence.

“There has been action from the government and our colleagues at the Treasury Directorate General to buy some bonds so yields remain under control,” he said.

Keeping the bond market stable is important for maintaining investor appetite for Indonesian debt, both from foreign and domestic investors, he added.

“As long as the bond market remains controlled, foreign investors as well as domestic investors will continue to have interest in our bonds,” Purbaya said.

He also claimed the government has started to see renewed foreign capital inflows into Indonesia’s bond market and hinted at further policy measures to support the rupiah, although he declined to provide details.

“We have started to see foreign capital inflows into our bond market,” he said. “Going forward, there will be further government measures that will help support the rupiah more significantly.”

Purbaya ended his remarks by urging the public to remain calm as authorities continue monitoring financial market developments.

“Stay calm,” he said.

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