Jakarta, Indonesia – Indonesian Finance Minister Purbaya Yudhi Sadewa has confidently stated that the ongoing decline of the Indonesian rupiah will not last long.
The statement, made on Tuesday (May 19), comes as the local currency touched a high of Rp 17,743 against the US dollar.
“The rupiah will not stay at its highest weakening level for long,” stated the Minister of Finance, Purbaya Yudhi Sadewa.
Government Steps In With Bond Stabilization Fund
According to Minister Sadewa, his optimism stems from proactive measures that are being implemented by the government.
The government has activated a bond stabilizing fund, a strategic pool of resources designed to support the government bond market.
By stabilizing bond yields, the government aims to reduce pressure on the rupiah and restore investor confidence.
The Finance Minister believes these combined efforts will effectively counter the current downward trend, preventing long-term weakness in the exchange rate.
Short-Term Volatility Expected to Ease
While recognizing the sharp depreciation, the Minister classified the situation as a temporary shock rather than a prolonged crisis.
According to the minister, the government has all the necessary fiscal tools and policy responses to cope with the volatility.
This aims to ensure that the rupiah’s fluctuations remain within manageable limits, supporting overall economic stability.
The comments from the minister aim to soothe markets and signal that the authorities are closely watching and responding to the currency’s performance, with recovery expected in the near future.
Source: ANTARA News
Feat Image: ANTARA News
