Indonesia pledges fiscal discipline as rupiah weakens past Rp18,000
The finance ministry says coordination with Bank Indonesia will continue while respecting the central bank’s independence in monetary policy.
Indonesia’s finance ministry said it would maintain fiscal discipline amid pressure on the rupiah, which ended trading on 22 October 2026 at Rp18,045 per US dollar. The ministry said it was continuing to coordinate with Bank Indonesia to support economic stability.
Herman Saheruddin, the ministry’s director general of financial system stability and development, told reporters on 22 October that monetary measures concerning the rupiah were Bank Indonesia’s responsibility. The ministry’s role, he said, was to keep the fiscal position sound.
Herman said the government respected the central bank’s independence and that fiscal and monetary policies needed to work together. He also pointed to Bank Indonesia’s reduction in reserve requirements while keeping its benchmark interest rate unchanged.
Refinitiv data showed the rupiah lost 0.25 per cent, or 45 points, from its 21 October close of Rp18,000 per US dollar. The currency weakened even as the US dollar index declined.
