- The Indonesian rupiah closed at its weakest level in modern history on Tuesday, touching Rp17,490 per US dollar.
- The Ministry of Finance is deploying the Bond Stabilization Fund (BSF) to relieve pressure on the currency.
- Lawmakers demand accountability as the central bank and government prepare to address the economic emergency.
LANGGAMPOS.COM - The Indonesian rupiah plummeted to an unprecedented historic low on Tuesday's close, prompting immediate emergency measures from state fiscal authorities.
Refinitiv data showed the local currency weakened by 0.49 percent, wrapping up the trading day at a grim Rp17,490 per US dollar.
During intraday trading, the currency briefly breached the psychological threshold of Rp17,500 per US dollar, sending shockwaves through domestic financial markets.
In a swift response to the market turmoil, Finance Minister Purbaya Yudhi Sadewa announced that his office will actively assist Bank Indonesia (BI) to stabilize the exchange rate.
The coordinated effort between the fiscal and monetary authorities is scheduled to commence on Wednesday, May 13, 2026.
"We will start offering our assistance tomorrow," Purbaya told reporters at his office shortly after the rupiah breached the critical level.
To combat this sudden depreciation, the government plans to mobilize the Bond Stabilization Fund (BSF) as its primary financial weapon.
The policy decision was finalized following an unannounced, urgent briefing with top-tier treasury officials at the Kemenkeu headquarters in Jakarta.
Key officials in attendance included Secretary General Robert Leonard Marbun and Director General of Financing and Risk Management Suminto.
Director General of Treasury Astera Primanto Bhakti and Acting Director General of Economic and Fiscal Stability Ferry Ardiyanto were also present.
When pressed on the specifics of the market rescue operation, Purbaya chose to keep his tactical cards close to his chest.
"The strategy remains confidential; revealing it prematurely would only tip off market speculators," Purbaya noted firmly.
Despite the secrecy, the minister confirmed that the BSF mechanism will focus heavily on targeted interventions within the sovereign bond market.
The primary objective is to maintain competitive yields on government bonds, effectively preventing panic-selling by international investors.
The government intends to utilize the accumulated BSF reserves to buy back Sovereign Debt Instruments (SBN) currently being dumped by foreign traders.
This autonomous fiscal move circumvents the need for formal clearance from the Financial System Stability Committee (KSSK), which includes BI and the OJK.
Initial operations will rely entirely on liquid state cash reserves rather than new debt issuances, according to the treasury roadmap.
"We aim to restore confidence in the bond market first, which should naturally ease pressure on the foreign exchange market," Purbaya explained.
The currency crisis has also triggered alarms in parliament, with House of Representatives (DPR) Speaker Puan Maharani calling for immediate clarity.
The legislature is preparing to summon both the central bank and the government to explain the sudden structural weakness of the national currency.
Responding to the upcoming parliamentary probe, Purbaya stated that his team is fully prepared to provide the necessary testimonies.
However, the finance minister reminded lawmakers that currency management fundamentally falls under the legal jurisdiction of the independent central bank.
"We have not received the official summons yet, but we stand ready to answer any questions from the house," Purbaya clarified.
He reiterated that the Ministry of Finance remains a supporting actor in this specific scenario, as Bank Indonesia holds the primary mandate for monetary defense. (*)
Frequently Asked Questions (FAQ)
What caused the Indonesian rupiah to drop to its lowest level in history?
The rupiah fell due to intensifying global and domestic market pressures, closing at Rp17,490/US$ and briefly touching Rp17,500/US$. This represents the weakest closing position for the currency in modern economic history.
How does the Ministry of Finance plan to help Bank Indonesia stabilize the currency?
The government is utilizing the Bond Stabilization Fund (BSF) to intervene in the state bond market. By purchasing sovereign bonds (SBN) being sold off by foreign investors, the government aims to stabilize yields and indirectly support the rupiah.
Does this emergency intervention require approval from the KSSK?
No. The initial phase of this intervention will rely directly on state cash reserves through the BSF framework, allowing the Ministry of Finance to act swiftly without waiting for a formal KSSK forum consensus.
#RupiahCrisis #IndonesiaEconomy #FinanceMinistry #BankIndonesia #BondStabilizationFund #EconomicStability
What caused the Indonesian rupiah to drop to its lowest level in history?
The rupiah fell due to intensifying global and domestic market pressures, closing at Rp17,490/US$ and briefly touching Rp17,500/US$. This represents the weakest closing position for the currency in modern economic history.
How does the Ministry of Finance plan to help Bank Indonesia stabilize the currency?
The government is utilizing the Bond Stabilization Fund (BSF) to intervene in the state bond market. By purchasing sovereign bonds (SBN) being sold off by foreign investors, the government aims to stabilize yields and indirectly support the rupiah.
Does this emergency intervention require approval from the KSSK?
No. The initial phase of this intervention will rely directly on state cash reserves through the BSF framework, allowing the Ministry of Finance to act swiftly without waiting for a formal KSSK forum consensus.
#RupiahCrisis #IndonesiaEconomy #FinanceMinistry #BankIndonesia #BondStabilizationFund #EconomicStability
