Indonesia's Ministry of Finance said Finance Minister Purbaya Yudhi Sadewa told a coordination meeting with Bank Indonesia and other economic stakeholders that the government will continue strengthening fiscal and monetary policy coordination to preserve economic stability, support the rupiah and deliver faster, more sustainable growth. The ministry framed the main priority as closer alignment between fiscal and monetary actions so that policy tools reinforce each other within each authority's mandate. At the meeting, the government and Bank Indonesia agreed to intensify coordination to maintain rupiah exchange rate stability. Measures highlighted included increasing the yield appeal of domestic financial instruments to encourage capital inflows and maintaining adequate liquidity in money markets and the banking system. The ministry added that a more stable rupiah should help reduce production costs for businesses that depend on imported inputs, ease pressure on goods prices and support economic activity for both firms and households.

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