TEMPO.CO, Jakarta - A number of accounts on Instagram [archive], Facebook, YouTube, and TikTok are spreading claims that Bank Indonesia is deliberately weakening the rupiah exchange rate. This narrative emerged as rupiah hit a record low of Rp17,880 per US dollar on May 12, 2026.
The posts state that the central bank is deliberately weakening the rupiah for two purposes. First, to significantly raise exports to compete in the global market. Second, to entice investors to buy Indonesian shares at lower prices.
However, is it true that Bank Indonesia is deliberately weakening the rupiah?
FACT CHECK
Tempo verified the claim of Bank Indonesia behind the rupiah depreciation by interviewing economists and reviewing other credible sources. The results showed that the rupiah's depreciation against the US dollar was triggered by external factors such as the geopolitical situation, as well as internal factors such as sentiment over domestic economic conditions. On the other hand, rupiah stabilization depends on the performance of the government and Bank Indonesia.
Factors Behind Rupiah Depreciation
Economist from Gadjah Mada University Denni Puspa Purbasari explained that claims that Bank Indonesia deliberately depreciated its currency contradict the central bank's mandate to maintain rupiah stability. According to her, there are two main factors behind the rupiah's depreciation: fundamentals and expectations.
Fundamental factors are linked to the interaction between supply and demand. Recently, the geopolitical conflict between Iran and the United States and Israel triggered a spike in oil prices. "The high current account deficit also triggered rupiah's depreciation," Denni told Tempo on Tuesday, June 2, 2026.
Bank Indonesia recorded a capital and financial transaction deficit of US$4.9 billion in the first quarter of 2026, a reversal from the previous quarter's surplus of US$9.0 billion. BI attributed this deficit to global financial market uncertainty, maturing foreign loan payments, and the placement of cash and assets abroad.
Meanwhile, expectations are related to market sentiment or projections, influenced by the investment climate and government policies. Investors will be closely monitoring whether there are any policy changes that could strengthen the rupiah. Therefore, the response of the government and Bank Indonesia in determining fiscal policy is crucial.
"This includes whether structural reforms are being implemented to attract foreign capital to Indonesia," said Denni.
Investors' Concerns
Stock market expert Ferry Latuhihin explained that the rupiah's depreciation was also triggered by capital outflow from the stock market. Investors sold their shares because they deemed Indonesia's outlook negative.
Furthermore, foreign investors suffered losses because their assets in Indonesia were held in rupiah. By May 2026, foreign investors' ownership of Government Bonds (SBN) remained at around 12.75 percent.
According to Ferry, Bank Indonesia's recent interest rate hike will not have a significant impact because investor confidence in the rupiah is negative. "BI can't do anything; it can only respond," Ferry said when contacted by Tempo on Saturday, May 23, 2026.
On a similar note, Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (INDEF), argued that investors are anxious to see the Indonesian government implementing high expansionary priority programs, despite having little fiscal space. Controversial statements from policymakers could also further fuel market uncertainty.
Esther suggested that the government restrain investors to prevent capital outflows. She also urged the restoration of the central bank's independence, preventing it from being used as an agent of development or underwriting government programs.
"Beat the ambition to implement ambitious programs such as the massive expansion of the MBG (free nutritious meal) and the Red and White Village Cooperatives. Focus on exchange rate stability and commodity prices," said Esther, Tuesday, May 19, 2026.
BI has also reaffirmed its commitment to maintaining rupiah exchange rate stability amid global turmoil and high seasonal domestic foreign exchange demand.
These measures include strengthening foreign exchange market transaction policies and expanding foreign exchange monetary operation instruments. "Going forward, Bank Indonesia believes the rupiah exchange rate will stabilize and strengthen," as quoted in a BI press release on May 20, 2026.
Origins of Claims
The narrative of deliberate rupiah depreciation began with a post by influencer Benny Hutabarat on the Bennix YouTube channel on January 26, 2026. The video, which has been viewed more than 500,000 times, was reshared on social media platforms X and TikTok as rupiah weakened in May 2026.
Benny stated that a weakening currency could be good news for countries with export competitiveness in the global market, such as China.
Tempo contacted Benny via direct message on Facebook and Instagram for clarification. Through his social media admin, Benny clarified that he was simply comparing the mindset of people in countries with strong exports. "That doesn't mean Indonesia is happy to have its currency weakened," he said on Thursday, June 4, 2026.
China did implement a strategy of weakening the yuan against the US dollar in 2013 when launching its Belt and Road Initiative program to reduce economic dependence and limit market intervention. However, the economic conditions of China and Indonesia could not be more different.
Citing the December 2019 edition of the Transnational Corporations Review journal, China has a solid strategy for maintaining its balance of payments and controlling inflation despite being involved in a trade war with the US. China also has strong influence in implementing bilateral trade agreements using the yuan or renminbi (RMB) through 31 foreign banks in 27 countries. In contrast, Indonesia maintains a non-aligned stance in global politics, and the implementation of local currencies or Local Currency Settlement (LCS), has only been implemented in five countries.
This disinformation is also sourced from a podcast by Gema Goeyardi and Robert Reich of Astronacci, a trading research and education company. Their video was re-uploaded with a false context.
In the original video on Astronacci's YouTube channel on May 14, 2026, Robert merely sought to spark discussion about the issue of deliberately depreciating the rupiah. Gema then responded by outlining theoretical scenarios for why a country would depreciate its currency, such as to increase exports or attract investors.
When contacted by Tempo, Astronacci content manager Robert emphasized that their conversation was purely a scientific discussion, not an accusation against Bank Indonesia.
"That's a misunderstanding. Many people have the misconception that we're saying the rupiah's weakening is being deliberately carried out by Bank Indonesia or the government. So, that's not a statement that can be quoted and labeled as us talking about deliberate weakening of the rupiah," Robert told Tempo on Tuesday, June 2, 2026.
CONCLUSION
Tempo's verification results conclude that the narrative that BI is deliberately weakening the rupiah to boost exports and attract foreign investors is false.
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