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Market Chatter: Weakening Rupiah Not Due to Indonesian Govt Fiscal Policies, Finance Minister Says

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The weakening of the Indonesian currency toward 18,000 rupiah per U.S. dollar does not reflect worsening government finances, The Jakarta Globe reported Thursday, citing Finance Minister Purbaya Yudhi Sadewa.

Purbaya dismissed concerns that the government's recent fiscal policies were reckless while speaking to reporters.

He supported his claim with state budget figures, stating that the budget deficit dropped to roughly 0.7% of GDP and tax revenue increased over 22% from a year prior, the newswire reported.

The deterioration of the rupiah has instead been a result of market sentiment and speculation, Purbaya reportedly said.

He also pushed back on rumored instructions to banks to carry out stress tests if the currency goes below the 18,000 rupiah per U.S. dollar mark, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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