JAKARTA: Indonesia's finance minister said on Tuesday that the government would ensure the central bank's independence and not use its funds to pay for its policy programmes, noting that the rupiah was likely to rebound with economic fundamentals still strong.
The comments came after the rupiah hit a record low after concerns over the independence of the central bank resurfaced, with lingering fiscal worries rattling investors in Southeast Asia's biggest economy.
"Although the rupiah has weakened, in percentage terms it is only a small amount compared to previous levels, so the (financial) system should already be accustomed to this," Finance Minister Purbaya Yudhi Sadewa told journalists, adding that the impact on the economy was minimal.
The currency has fallen nearly 2% against the dollar in January after dropping 3.5% in 2025 and was last at 16,965. The yield on 10-year Indonesia government bond ID10YT=RR was 3.3 basis points higher at 6.33%, an over-three-month high. - Reuters
