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TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto considered the current depreciation of the rupiah to be different from two decades ago. He pointed out that between 2004 and 2014, the currency plummeted by 40 percent over a decade. Meanwhile, in 2005, inflation soared to 17 percent, driven by a spike in global oil prices to US$140 per barrel.
Furthermore, Airlangga stated that during the 2014-2024 period, the rupiah depreciated by 30.6 percent, while inflation was kept at 3 percent. "So there is a difference in quality over the last two decades. As of today, we are maintaining our inflation at 2.4 percent and the rupiah's depreciation at 5 percent," Airlangga said during the National Conference on Regional Economic Development at the Jakarta Convention Center on Monday, May 25, 2026.
Airlangga emphasized that the weakening of the local currency should be viewed within a broader context. According to him, Indonesia's economic fundamentals remain resilient, backed by solid banking and corporate sectors.
Echoing this sentiment, Chairperson of the House of Representatives' Commission XI, Mukhamad Misbakhun, argued that the rupiah’s slide to Rp17,600 per US dollar cannot be equated with the 1998 financial crisis. He recalled that during the 1998 meltdown, the exchange rate similarly touched Rp17,800 per US dollar.
Misbakhun explained that back then, the currency suffered a massive crash of several hundred percent in a very short window. "However, at that time, the rupiah collapsed to that level from around Rp2,000 per US dollar. Today, the rupiah at Rp17,000 started from the Rp16,800 mark, moving through a well-preserved volatility process," he said.
The rupiah exchange rate rebounded slightly this morning, gaining 21 points or 0.12 percent to trade at Rp17,696 per US dollar against its previous close of Rp17,717 per US dollar. Doo Financial Futures currency analyst Lukman Leong attributed this uptick to emerging hopes for a peace settlement between the U.S. and Iran.
Meanwhile, market sentiment has started to improve since last Friday when the stock market closed on a positive note. "Nevertheless, the rupiah remains under pressure after current account balance data revealed a widening deficit," Lukman said in Jakarta on Monday, May 25, 2026, as quoted by Antara.
Read: Indonesian Rupiah Strengthens to Rp17,696 Per US Dollar
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