TEMPO.CO, Jakarta - The rupiah continues to fluctuate against the US dollar, hovering around the 18,071 mark. Despite this pressure, Finance Minister Purbaya Yudhi Sadewa remains optimistic that the local currency will soon strengthen following consecutive depreciation over the past few months.
Purbaya noted that current global market dynamics are driven by external headwinds beyond the government's control. "Indeed, there are several global sentiments in the world market that we cannot control," he said during the launch of electric rickshaws and the opening of the 2026 UMi Market in Yogyakarta on Thursday afternoon, July 16.
Even so, Purbaya emphasized that weathering such global pressures is to ensure that the domestic economy, especially Micro, Small, and Medium Enterprises (MSMEs) on the ground, continues to move and thrive.
In his view, a stronger rupiah is the logical outcome of healthy economic growth combined with steady domestic social and political stability.
The existence and growth of resilient MSMEs are considered the foundation for maintaining a conducive social and political climate, which in turn attract international investors.
"In the long run, the rupiah will also strengthen, because people will invest in a place with strong economic growth and stable social and political stability," he said. "If MSMEs can grow strongly, they will certainly maintain social and political stability."
Presidential Support and Interest Rate Cuts
The Ministry of Finance, alongside other government agencies, is currently locked in on ensuring the long-term viability of the MSME sectors, Purbaya noted. He added that keeping these grassroots economic wheels turning aligns directly with instructions from President Prabowo Subianto. To that end, the President has ordered a drastic slash in loan interest rates for micro-enterprises.
"Pak President has ensured that loan interest rates for micro-enterprises and MSMEs drop from 22 percent to 8 percent. That is a clear testament to his support for the Indonesian economy, particularly the people's economy and MSMEs," Purbaya said.
Therefore, Purbaya urged stakeholders not to worry much over external pressures and instead focus entirely on fortifying domestic economic instruments. Safeguarding local economic stability, he argued, is a sufficient shield against the fallout of global volatility.
Positive Projections from S&P
Furthermore, Purbaya pointed out that the international rating agency Standard & Poor's (S&P) recently projected a positive trajectory for the local currency. "So we just focus on that, because we won't be affected by the global [conditions]. As long as we maintain the domestic economy, we should not be afraid," he said. "If you look at S&P's release yesterday, it also mentioned that the rupiah will strengthen to 17,000, in line with our target."
Purbaya maintains that this outlook signals the dawn of a new economic recovery. While global oil prices have slipped and marginally rebounded, he remains confident that commodity fluctuations will remain manageable and that global economic activity is outperforming previous months despite ongoing friction.
"I am convinced that this new improvement has just occurred. The oil price dropped, then increased slightly, but I think it will be under control in the future," he said.
Purbaya expects that a steadier global backdrop will translate into brighter prospects for Indonesia, particularly by driving up foreign direct investment volumes.
The Return of Global Capital
According to Purbaya, global investors will generally begin to turn their attention and shift capital to developing countries achieving high economic growth, such as Indonesia, where capital flows will reverse once the global market situation calms down.
"Our outlook is strong; when global volatility spikes, investors pull out, but they return once it stabilizes," Purbaya explained.
Anchored by these economic indicators, Purbaya remains confident that the rupiah will stage a quick recovery, provided the public maintains composure. "So the rupiah should strengthen not too long," he concluded.
Read: Purbaya Responds as Coalition Challenges Indonesia's Patriot Bond
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