Indonesian Finance Minister Purbaya denies resignation amid market turmoil and bond inflows

Indonesian Finance Minister Purbaya Yudhi Sadewa firmly rejected rumors that he had resigned amid market turbulence. The rumors, which gained traction on June 4, 2026, were fueled in part by a mistaken repost of a 2013 statement about a finance minister change, officials said ^[1]. State Secretary Prasetyo Hadi also confirmed on June 4 that Purbaya is not stepping down, emphasizing the need for closer coordination among economic agencies ^[1].

Despite a sharp drop in equities, Purbaya pointed to net inflows in government bonds and central bank debt securities, including Sustainable and Responsible Bank Indonesia Bonds (SRBIs), through early June 2026 as signs of investor confidence. "As we can see, optimism about the Indonesian economy remains strong. So don’t be swayed by a single news report. Inflows into SRBIs and bonds remain significant," Purbaya said ^{[2, 3]}.

The rupiah weakened to a record low, breaching 18,000 per U.S. dollar in early June, hitting a psychological threshold for the currency ^{[2, 1, 3]}. Meanwhile, Indonesia’s stock benchmark index was the worst-performing global market in 2026, sliding as much as 2% on June 5 ^{[1, 3]}. Yields on 10-year government bonds rose five basis points to 6.86% the same day, reflecting cautious investor sentiment amid volatility ^[3].

Concerns persist over the Indonesian economy due to a graft probe tied to President Prabowo Subianto’s US$15 billion free food programme, import-export control plans, and several high-profile cabinet detentions, all of which have unnerved markets ^{[1, 3]}. Indonesian GDP growth was reported at 5.6% for the first quarter of 2026 ^[1].

State Secretary Prasetyo called for tighter coordination between the Finance Ministry, Bank Indonesia, the Financial Services Authority, and the Coordinating Ministry for Economic Affairs to address economic challenges effectively ^[1]. The government’s next key economic updates and market developments will be closely watched in the coming weeks as bond inflows and currency pressures continue to shape investor outlooks ^{[2, 3]}.