JakartaPost-Jan 20
Finance Minister Purbaya Yudhi Sadewa pledged on Tuesday to uphold the independence of the central bank, after lingering fears about government interference in monetary policy drove the rupiah currency to a record intraday low. The rupiah recovered from a slide of as much as 0.3 percent to Rp16,985 against the dollar, on investor jitters about President Prabowo Subianto’s decision to nominate his nephew as a governor of Bank Indonesia, and overall fiscal health. “We will maintain the independence of the central bank and the government as much as possible,” Purbaya told journalists. “I will not squeeze the central bank to finance our development programs.” The currency has fallen nearly 2 percent in January after dropping 3.5 percent in 2025. The yield on the 10-year Indonesia government bond was 3.3 basis points higher at 6.33 percent, its highest in more than three months. Purbaya sought to allay market concerns about the currency’s depreciation, saying economic fundamentals remain sound. “Although the rupiah has weakened, in percentage terms it is only a small amount, so the system should already be accustomed to this,” he said, adding that the impact on the economy was minimal. Purbaya said Thomas would resign from Prabowo’s political party, Gerindra, and would not be able to influence all board members. Read more at: https://www.thejakartapost.com/business/2026/01/20/govt-pledges-central-bank-independence-as-rupiah-hits-record-low.html?utm_source=(direct)&utm_medium=home_business.
