During a parliamentary meeting held on Monday (May 18), Chairman of Commission XI of the House of Representatives (DPR RI), Misbakhun, urged Bank Indonesia (BI) to implement precise monetary operations to stabilize the rupiah against the US dollar. He emphasized that these measures are essential to align the currency’s performance with the macro-economic assumptions set in the 2026 State Budget (APBN).
Misbakhun specifically called for the central bank to intervene effectively, aiming to bring the exchange rate back to the agreed political target of Rp16,500 per US dollar. He noted with concern that since January 1, 2026, the rupiah has struggled to reach this level, which remains a critical benchmark for the national budget. Ensuring the rupiah meets this threshold is a priority for the House, as it directly impacts the country’s financial stability.
The impact of a weakening rupiah extends far beyond government fiscal concerns. Misbakhun highlighted the ripple effect on national energy imports, such as fuel and LPG, as well as the private sector. Many industries that rely on imported raw materials, such as the plastics manufacturing sector, are currently facing significant pressure. Producers are already forced to seek costly alternatives or adjust their operations due to the unfavorable exchange rate, which ultimately affects the broader public.
In response to these concerns, BI Governor Perry Warjiyo expressed optimism regarding the outlook for 2026. Despite current fluctuations, Bank Indonesia maintains that the average exchange rate for the full year remains on track to align with the APBN target. The central bank projects a range of Rp16,200 to Rp16,800, with an average of Rp16,500 per US dollar.
Addressing the current market sentiment, Governor Perry explained that the rupiah is currently considered undervalued due to a seasonal surge in demand for foreign currency. However, he remains confident that the trend will shift in the coming months. “Historically, we see high demand during April, May, and June. We expect the rupiah to strengthen starting in July and August, keeping our full-year outlook consistent with the projected targets,” Perry concluded.
Summary
The Chairman of the House of Representatives’ Commission XI, Misbakhun, has urged Bank Indonesia to implement effective monetary operations to stabilize the rupiah at the target rate of Rp16,500 per US dollar. This intervention is deemed critical to ensure fiscal alignment with the 2026 State Budget and to mitigate the negative impacts of a weak currency on energy imports and private industries. The depreciation has placed significant operational pressure on businesses relying on imported raw materials, creating broader economic concerns.
In response, Bank Indonesia Governor Perry Warjiyo remains optimistic, projecting an average annual exchange rate between Rp16,200 and Rp16,800. He explained that the current undervaluation is largely due to seasonal surges in foreign currency demand. The central bank expects the rupiah to strengthen by July and August, keeping the performance within the agreed national budget targets.