Jakarta. Finance Minister Sri Mulyani Indrawati stated on Friday that the rupiah remains supported by strong economic fundamentals despite its continued depreciation against the US dollar.

She noted that the Indonesian currency has shown an upward trend against several major currencies from developed nations and remains stable when compared to other currencies in emerging markets.

So far this year, the rupiah has weakened by 1.14 percent against the dollar but she said the trend was shared by many currencies in the region. 

“The current developments align with Bank Indonesia’s stabilization measures, supported by the inflow of foreign capital, attractive yields from our bonds, and the positive outlook on the Indonesian economy,” Sri Mulyani said during a press conference at her office in Jakarta.

The minister also pointed to Indonesia’s robust foreign exchange reserves, which stand at $155.7 billion. This amount is sufficient to cover imports for at least 6.5 months and ensure the government can meet its overseas debt obligations.

To further strengthen the rupiah and bolster foreign exchange reserves, the government has implemented targeted policies. One key policy requires exporters of natural commodities to deposit their foreign currency earnings in local banks for a minimum of one year.

“This policy aims to boost our foreign exchange reserves and stabilize the rupiah’s exchange rate,” Sri Mulyani explained.

Throughout 2024, the rupiah depreciated by 4.34 percent against the dollar, closing the year at 16,095 per dollar on December 31. However, Sri Mulyani pointed out that the rupiah outperformed currencies like the South Korean won, Mexican peso, Brazilian real, Japanese yen, and Turkish lira over the same period.

“Entering 2025, the US dollar continues to put pressure on the rupiah,” she added.