Finance Minister Purbaya Yudhi Sadewa said Indonesia's rupiah should strengthen due to strong national economic fundamentals. However, the rupiah weakened to Rp16,997 per US dollar on March 16, 2026. He remains confident the IHSG will hit 10,000 by end-2026.
Jakarta, March 16, 2026 – Finance Minister Purbaya Yudhi Sadewa stated that Indonesia's rupiah should strengthen given the strong performance of national economic fundamentals. He made the remarks at the Coordinating Ministry for Economic Affairs office in Jakarta on Monday (March 16, 2026). The rupiah instead weakened 39 points or 0.23 percent to Rp16,997 per US dollar at Monday's close, from Rp16,958 previously. He deferred intervention strategies to Bank Indonesia, the authority responsible for exchange rate stability. “If the economy is running fast, getting faster, the fundamentals should be good. Normally, the rupiah should strengthen,” Purbaya said. “I don't know why (the rupiah) is weakening. You should ask the central bank. Because the central bank's sole responsibility is to maintain exchange rate stability,” he added. Purbaya is also confident the Composite Stock Price Index (IHSG) will break 10,000 by end-2026. “To the moon, still. 10,000 (end of year) is still possible,” he said. Indonesia's economic foundation is solid, with faster growth than neighbors or G20 countries despite controlled deficits. The IHSG closed down 114.92 points or 1.61 percent at 7,022.29 on March 16, down 19.73 percent year-to-date. Market and rupiah weakness is linked to US-Iran conflict dynamics in the Middle East, according to analyst Ibrahim Assuaibi.
