Jakarta. Finance Minister Purbaya Yudhi Sadewa on Tuesday rejected claims that the rupiah’s recent weakness was driven by deteriorating fiscal conditions, as the currency slid to a record low.

The rupiah fell to Rp 17,424 per US dollar, prompting market concerns over Indonesia’s macroeconomic stability. Some analysts have linked the decline to the country’s fiscal position, but Purbaya dismissed the argument, insisting that the state budget remains sound.

“There are claims that Indonesia’s fiscal position is weakening, hence the rupiah is depreciating. If you want to ask about the rupiah, ask Bank Indonesia, not me. They are the ones responsible for explaining it,” he said at a press conference in Jakarta.

Purbaya added that exchange rate movements fall under the purview of the central bank, while the Finance Ministry is focused on maintaining fiscal discipline.

The comments come as the government reported a budget deficit of Rp 240.1 trillion ($13.8 billion) in the first quarter of 2026, equivalent to 0.93% of gross domestic product (GDP). While the figure has drawn scrutiny, Purbaya noted it remains well below the legal ceiling of 3% of GDP.

“We have a deficit of 0.93% of GDP, but it should not simply be annualized because spending and revenue cycles differ. What is clear is that we will keep the deficit below 3% this year, in line with our budget design,” he said.

State revenue rose 10.5% year-on-year to Rp 574.9 trillion as of March, supported by a 20.7% increase in tax receipts. Revenue collection typically accelerates toward the end of the fiscal year.

Meanwhile, government spending reached Rp 815 trillion in the first quarter, equivalent to 21.2% of the full-year target and up 31.4% from the same period last year, reflecting continued fiscal expansion.