The Indonesian Rupiah’s significant depreciation to a record low captured significant attention as one of kumparanBISNIS’s top stories on Tuesday, May 5th. This financial development unfolded alongside a notable claim by Finance Minister Purbaya Yudhi Sadewa, who asserted that the Indonesian economy has successfully broken free from the ‘curse’ of stagnant 5 percent growth. To delve deeper into these pivotal economic updates, here is a detailed summary of the popular news.
On Tuesday, May 5th, the Rupiah exchange rate demonstrated a sharp and significant weakening, hitting a level of Rp 17,412 per US dollar by 09:52 AM Western Indonesian Time (WIB). This figure represents a notable decline of 18.00 points, or 0.10 percent, from its previous standing, and has been identified as a historic low for the currency. Earlier in the day, specifically at 09:00 AM WIB, the Rupiah had initially appeared stagnant, hovering around Rp 17,363 per US dollar.
This substantial Rupiah depreciation unfolded amid persistent high levels of global market uncertainty. Data from Bloomberg indicated that the currency had already weakened by 13.50 points, or 0.08 percent, reaching Rp 17,407 per US dollar at the start of trading. This prevailing condition clearly reflects the ongoing external pressures casting a shadow over Indonesia’s domestic financial market.
Adding to this challenging scenario, the Jakarta Composite Index (IHSG) also opened in the red zone, mirroring the negative market sentiment. According to Stockbit data, the IHSG stood at 6,951, marking a 0.15 percent decrease at the trading session’s opening. This overarching trend of weakening across the financial markets underscores negative investor sentiment regarding the short-term economic outlook.
Shifting focus, Finance Minister Purbaya Yudhi Sadewa proudly asserted that Indonesia has successfully broken free from the long-standing “curse” of stagnant economic growth hovering around the 5 percent mark. This bold claim is substantiated by the remarkable economic performance recorded in the first quarter of 2026, which saw a robust year-on-year (YoY) growth of 5.61 percent. This figure represents a significant acceleration from the 5.39 percent achieved in the fourth quarter of 2025, signaling a notable pickup in the nation’s economic pace amidst prevailing global uncertainties.
Minister Purbaya further emphasized that achieving 5.61 percent growth is an extraordinary accomplishment, indicative of the domestic economy transitioning towards a path of accelerated expansion. Nevertheless, the government remains acutely aware of various forthcoming challenges, particularly those stemming from a global landscape that has yet to fully recover. Persistent external pressures, he noted, could still potentially impact Indonesia’s export performance and overall national economic stability.
To effectively sustain this positive economic momentum, the government intends to concentrate its efforts on strengthening domestic demand while simultaneously bolstering export-oriented sectors to ensure their competitiveness in the global market. Furthermore, the Ministry of Finance is actively developing several short-term policy initiatives designed to support the continued trajectory of economic growth well into the future.
Summary
The Indonesian Rupiah significantly depreciated to a historic low of Rp 17,412 per US dollar on Tuesday, May 5th. This notable decline, reaching 0.10 percent from its previous standing, occurred amid persistent high global market uncertainty. Mirroring this negative sentiment, the Jakarta Composite Index (IHSG) also opened in the red zone, indicating broader market weakness.
In contrast, Finance Minister Purbaya Yudhi Sadewa proudly asserted that Indonesia’s economy has broken free from the ‘curse’ of stagnant 5 percent growth. This claim is substantiated by a robust 5.61 percent year-on-year economic growth recorded in the first quarter of 2026, an acceleration from 5.39 percent in Q4 2025. The government plans to sustain this positive momentum by strengthening domestic demand and bolstering export-oriented sectors, while remaining aware of global challenges.