Jakarta, VIVA \u2013 The Chairman of Commission XI of the Indonesian House\nof Representatives (DPR RI), Mukhamad Misbakhun, stated that the current\ndecline in the value of the rupiah against the US dollar cannot be\ndirectly equated to the economic crisis conditions seen in 1998.<\/p>\n
Misbakhun shared these views during a \u20181 on 1 Legislative with\nMukhamad Misbakhun\u2019 session at the Jogja Financial Festival 2026,\norganised by the Indonesia Deposit Insurance Corporation (LPS) at the\nJogja Expo Center, Yogyakarta.<\/p>\n
\u201cWe must reassure the Indonesian people that the rupiah value of\nRp17,800 against the US dollar is indeed a phenomenon. It is a very high\nfigure for the present, but remember that the rupiah at its current\nlevel may have once matched the 1998 crisis,\u201d Misbakhun said on\nSaturday, 23 May 2026.<\/p>\n
According to him, the weakening of the rupiah in 1998 occurred from a\nmuch lower baseline, and the economic structure is different compared to\ncurrent conditions.<\/p>\n
\u201cThe rupiah at Rp17,500 or Rp17,800 during the 1998 crisis started\nfrom a base of Rp2,400. The rupiah now is at the level of Rp16,600,\nstarting from the Rp16,000 range. Our economic structure situation is\nalready different,\u201d he explained.<\/p>\n
Misbakhun noted that in 1998, many sectors faced heavy pressure,\npartly due to foreign currency-denominated loans and inadequate hedging\npractices. He assessed that the current situation is distinct, as the\npressure on the rupiah has not led to the failure of the banking or\nprivate sectors as seen during the 1998 crisis.<\/p>\n
\u201cEven with the rupiah at Rp17,600, no banks or private entities have\nexperienced failure. The current challenge is not only maintaining\neconomic stability but also building public understanding so that people\nare not easily influenced by sentiments developing on social media,\u201d\nsaid Misbakhun.<\/p>\n
He added that public perception of economic conditions can be shaped\nby information that does not always represent the full reality. \u201cOur\nsentiment is currently determined by social media. Our perspective is\ninfluenced by what we see on social media,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/misbakhun-states-rupiah-depreciation-is-not-as-severe-as-the-1998-crisis-provides-comparison-1780884428", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }