TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa has affirmed that the government will support Bank Indonesia in managing the mounting pressure on the rupiah. On Tuesday, May 12, 2026, the local currency was recorded weakening to approximately Rp17,500 per US dollar.
"We will try to help stabilize the exchange rate, assisting BI little by little if possible. We have a lot of idle money and will intervene in the bond market to prevent yields from climbing too high," Purbaya stated at the Ministry of Finance office in Central Jakarta on Tuesday, May 12, 2026.
He noted that this strategy will be executed through bond market intervention schemes, utilizing instruments available to the Ministry of Finance, such as the Bond Stabilization Fund (BSF) mechanism, even if the funds have not been fully deployed.
According to Purbaya, intervening in the bond market is essential to ensure that yields do not surge excessively.
By maintaining yield stability, the government hopes that foreign capital inflows will persist or even return, thereby bolstering the rupiah. Purbaya also claimed that the government’s current fiscal position is robust enough to support these stabilization efforts alongside Bank Indonesia.
The state treasurer further ensured that the 2026 state budget remains relatively sound. Based on internal government calculations, the exchange rate assumption used during the budget drafting was set higher than the official Rp16,500 per US dollar figure in the 2026 State Budget Law, remaining close to the currency's current position.
Read: Expert Shares Why Rupiah Falls Below Rp17,500 per US Dollar Today
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