Jakarta, IDN Times – Finance Minister Purbaya Yudhi Sadewa has decisively rejected claims that the Rupiah’s recent breach of the psychological 17,000 per US dollar mark, coupled with a decline in the Jakarta Composite Index (IHSG), signals an impending economic recession. He also moved swiftly to dispel widespread concerns drawing parallels between the current economic climate and the tumultuous monetary crisis of 1998.
“A Rupiah at 17,000 and a falling IHSG don’t mean we’re heading for a 1998-style recession with crippled purchasing power, as some economists suggest. That’s simply not the case,” Purbaya stated after an impromptu inspection at Tanah Abang Market in Jakarta on Monday, March 9, 2026.
Minister Purbaya emphasized that current national economic indicators present a picture starkly different from the pessimistic recession forecasts circulating among some analysts. Far from contracting, Indonesia’s economy continues to expand, and the government is fiercely committed to safeguarding the nation’s purchasing power. “Our economy is still expanding, and we are working tirelessly to protect purchasing power. Not only are we not in a crisis or a recession, we haven’t even seen a slowdown,” he affirmed, underscoring the resilience of Indonesia’s economic landscape.
Despite the prevailing volatility in the stock market, Purbaya urged investors to maintain calm and resist succumbing to panic. He unequivocally stated that the government remains steadfast in fortifying Indonesia’s economic foundations, ensuring their robustness amidst ongoing global external pressures. “We are still in a phase of expansion and acceleration. This is what we will diligently maintain in the coming weeks. Therefore, stock market investors need not fear; we are meticulously guarding our economic bedrock,” he declared, aiming to instill confidence and prevent market overreaction.
Furthermore, Purbaya underscored Indonesia’s proven track record in navigating various global economic shocks, from the 2008 financial crisis to the 2020 COVID-19 pandemic. This wealth of experience, he explained, serves as invaluable capital for the government to formulate precise and effective mitigation policies in the current climate. “We understand the causes of the 1998 crisis, and we applied those lessons during the global downturns of 2008-2009, resulting in robust growth. Similarly, in 2020, we shielded the economy with appropriate policies. So, rest assured, we possess ample experience and knowledge to mitigate any emerging volatility,” Purbaya asserted, drawing on a history of successful crisis management.
Looking ahead, Minister Purbaya assured that the momentum of economic growth will be steadfastly maintained through a series of strategic measures periodically implemented by the government. These actions are specifically designed to neutralize any negative repercussions stemming from the inherent volatility of global financial markets. “Our experiences from 2008, 2015, and 2020 clearly demonstrate our ability to preserve our economic growth momentum,” he emphasized, reinforcing confidence in the government’s proactive and adaptive economic management strategy.