Our Fiscal Condition is Good: Purbaya

Jakarta: Finance Minister Purbaya Yudhi Sadewa stated that Indonesia is not heading toward an economic, financial, and monetary crisis similar to that experienced in 1997-1998.

"We are not going toward a situation like that of 1997-1998. Our fiscal is good, the economy is good, and there are only negative sentiments here and there that have slightly affected the exchange rate," he said during a working visit to the Tanjung Priok Customs and Excise Office here on Saturday June 6, 2026 quoted from Antara.

According to him, the weakening rupiah exchange rate against the US dollar should be addressed through better coordination between the government, the Ministry of Finance, and Bank Indonesia.

On Thursday June 4, the rupiah weakened beyond Rp18,000 per US dollar for the first time. The rupiah depreciation has raised concerns among some parties about the possibility of a repeat of Indonesia's past economic crisis.

However, Purbaya emphasized that stronger synchronization between fiscal and monetary policies could help support the rupiah's recovery.

The policy coordination includes efforts to make domestic financial instruments more attractive to foreign investors and encourage capital inflows.

At the same time, the effort should be strengthened by maintaining liquidity in the money market and banking sector through the management of government cash funds deposited at Bank Indonesia (BI), accompanied by higher remuneration paid by the central bank to the government.

Such coordination is expected to help reduce production costs for businesses that depend on imported raw materials.

"We will ensure that this takes place in the coming period," the finance minister said.

"What I can say now is that our fiscal (condition) is good, the economy is good, and the President's leadership is strong enough to ensure that everything proceeds in accordance with the President's development strategy," he remarked.