The Indonesian government has raised 62.6 trillion rupiah ($4.05 billion) via bonds through private placement and is negotiating to borrow up to $750 million from development banks to fund its virus-stricken economy.
Meanwhile, with about 9,096 reported coronavirus cases the world's fourth-most populous country hopes its citizens will be able to return to normal lives by July.
"Concerns over Indonesia's demand slump and the pressures on the country's fiscal position amid the battle against COVID-19 are set to exert downward pressure on IDR, until the outbreak has peaked and domestic economic conditions can be eventually restored," said Han Tan, market analyst at FXTM said.
The rupiah is leading losses in emerging Asia and is set to record its worst day in nearly two weeks.
Investors were risk averse with most Asian currencies slipping against the dollar as persistent worries about coronavirus infections and a global recession added to the challenges for policymakers. The Indian rupee also weakened about 0.2%.