{
    "success": true,
    "data": {
        "id": 1758123,
        "msgid": "burhanuddin-abdullah-reveals-contents-of-meeting-with-prabowo-at-the-presidential-palace-1779542028",
        "date": "2026-05-22 18:05:30",
        "title": "Burhanuddin Abdullah Reveals Contents of Meeting with Prabowo at the Presidential Palace",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Former Bank Indonesia governor Burhanuddin Abdullah describes his May meeting with President Prabowo, noting discussions on past Indonesian economic episodes including the 2005-2008 energy crisis, subsidies and exchange-rate dynamics. He argues policy responses should be refined in light of external shocks, and recalls BI's rate hikes in 2005 to stabilise the rupiah as it weakened to around Rp17,600 per US dollar.",
        "content": "<p>Jakarta \u2013 The Governor of Bank Indonesia for the period 2003-2008,\nBurhanuddin Abdullah, has spoken about the contents of his meeting with\nPresident Prabowo Subianto at the Presidential Palace in Jakarta on\nFriday, 22 May 2026. He said the meeting discussed episodes in the\neconomy of the past.<\/p>\n<p>\u2018There was an event that happened before. Perhaps it can serve as a\nlesson now,\u2019 Burhanuddin told reporters.<\/p>\n<p>He explained that in the meeting he was asked for his views on the\nenergy crisis that occurred during 2005-2008, to draw comparisons with\ncurrent conditions. At that time, the government raised fuel prices\n(BBM) by up to 126%, driven by external factors.<\/p>\n<p>\u2018Those were the factors. I mean external factors. And the impact then\nwas similar to now; perhaps the way to handle it needs to be refined,\u2019\nhe said.<\/p>\n<p>Burhanuddin also said Prabowo did not consult specifically about the\nrupiah\u2019s depreciation against the US dollar. However, he noted that the\nexchange-rate discussion was conducted because during the energy crisis\nof 2005, the rupiah\u2019s depreciation also burdened government\nsubsidies.<\/p>\n<p>It is known that during the 2005 crisis the rupiah depreciated by\n8.6% compared with 2004, as reported by DetikFinance. On average in 2005\nit stood at around Rp 9,713 per US dollar, although it briefly fell to\nRp 11,900 per US$ by the end of August 2005.<\/p>\n<p>\u2018Not specifically, but the overall impact from the current global\nfactors first, then domestic factors, because subsidies were large at\nthat time,\u2019 he said.<\/p>\n<p>Furthermore, Burhanuddin also responded to BI\u2019s policy to raise the\nbenchmark interest rate to 5.25%, an increase of 50 basis points, as a\ncorrect decision in the face of the rupiah\u2019s weakness currently reaching\nthe level of Rp 17,600 per US$. He said that when he was governor of BI,\nhe also took several such rate hikes in 2005 to stabilise the\nrupiah.<\/p>\n<p>\u2018Thus (the benchmark rate) rose from 8% at the time to 12.5%. That\nstill had a positive impact because inflation was projected at 17%, so\neven at 12.5% the rate was still negative,\u2019 he stated.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/burhanuddin-abdullah-reveals-contents-of-meeting-with-prabowo-at-the-presidential-palace-1779542028",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}