Antara News·Indonesia·Thursday, November 12, 2026 at 09:26 AM UTC

Indonesia says rupiah turbulence unlike 1998 financial crisis

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Shofi, Kenzu

Jakarta (ANTARA) - Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo said fluctuations in the rupiah exchange rate driven by current political developments differ from those experienced during the 1998 Asian financial crisis.

Speaking to reporters at his office on Thursday, he said market turbulence triggered by political developments generally does not last long unless the country faces a major crisis similar to the one Indonesia experienced in 1998.

"Market fluctuations are normal during periods of political uncertainty, but they generally do not last long unless the situation resembles the 1998 Asian financial crisis, which was a very different situation," Wibowo said.

He expressed confidence that domestic market participants and businesses could withstand the impact of political developments, allowing market conditions to recover.

He also expressed hope that pressure on the rupiah would last only a few days, as he said had been the case during previous episodes of political turmoil. Furthermore, he stressed the importance of educating investors and market participants to ensure that investment decisions were not based on unverified information.

"Investor and stakeholder education is crucial to ensure that they do not make decisions based on rumors, whether political rumors, market rumors, or anything else," he said.

At the opening of trading on Thursday (November 12), the rupiah weakened by 49 points, or 0.27 percent, to Rp18,198 per US dollar from its previous close of Rp18,149.

Bank Indonesia (BI) said pressure on the rupiah in recent days had been driven not only by domestic factors but also by rising expectations of a US interest rate hike.

Domestically, BI said the pressure was also influenced by concerns over a possible downgrade of Indonesia's stock market classification by global index provider MSCI, domestic economic developments, and increased demand for foreign currencies toward the end of the year.

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