Indonesia’s Finance Minister Addresses Rupiah Weakness and Economic Concerns

Jakarta – Indonesia’s Minister of Finance, Purbaya Yudhi Sadewa, addressed concerns regarding the recent weakening of the Indonesian Rupiah against the US dollar, which reached IDR 17,000, and a 4% decline in the Composite Stock Price Index (IHSG). Minister Sadewa attributed these fluctuations to negative sentiment from economists regarding Indonesia’s economic conditions.

Dismissing Recession Fears

Speaking at Tanah Abang Market in Central Jakarta on Monday, March 9, 2026, Purbaya stated that the Rupiah’s depreciation and IHSG’s fall stemmed from speculation about a potential recession reminiscent of 1998. He firmly dismissed these concerns, asserting that the Indonesian economy is currently in an expansionary phase and that purchasing power remains stable. “Never mind the crisis, it’s not even a recession, it’s not slowing down yet. We’re still expanding, still accelerating. That’s what we’ll continue to maintain in the next few weeks,” Sadewa said.

Government Experience and Economic Foundations

Minister Sadewa emphasized the government’s experience in navigating economic crises, referencing successful responses to the 1998 Asian financial crisis, the 2008-2009 global financial crisis, and the economic challenges posed by the COVID-19 pandemic in 2020. He assured investors that the foundations of the Indonesian economy are robust and that appropriate policies are in place to maintain stability. “We already know the 1998 crisis, what caused it. We implemented it in 2008-2009, when the world fell, we grew well, right? In 2020 we will as well protect the economy with appropriate policies. So friends, you don’t demand to be afraid,” he added.

Minister Purbaya Yudhi Sadewa’s Background

Purbaya Yudhi Sadewa has served as Indonesia’s Minister of Finance since September 8, 2025, under President Prabowo Subianto. Prior to his appointment, he served as the 4th Head of the Indonesia Deposit Insurance Corporation from September 3, 2020, to September 8, 2025, under Presidents Joko Widodo and Prabowo Subianto. Born in Bogor, West Java, in 1964, Sadewa is an economist and engineer who graduated from the Bandung Institute of Technology.