What is needed now is not panic, but the courage to carry out\nstructural reforms consistently and collectively.<\/p>\n
Jakarta \u2013 In many developing countries, the exchange rate is often\nseen merely as a number on a financial screen. Yet behind every currency\nweakness there lies a long story about economic resilience, investor\nconfidence, industrial structure, and the direction of national\npolicy.<\/p>\n
For example, in Indonesia, the rupiah breached the psychological\nlevel of Rp17,750 per US dollar on 19 May 2026. The public would not\nonly see a change in numbers but read signals that the Indonesian\neconomy is facing a severe test that requires a deeper, more\ncomprehensive response.<\/p>\n
The rupiah\u2019s depreciation this time did not arrive overnight. It\nmoved slowly, from around Rp16,000, then through Rp17,000 in early\nApril, and eventually to the weakest level in its history.<\/p>\n
Because it happened gradually, this situation deserves careful\nattention. Gradual weakening often indicates structural problems that\nhave long formed, not just momentary jitters due to global\nsentiment.<\/p>\n
Many attribute the situation to the escalation of the United\nStates\u2013Iran conflict, which pushed world oil prices above $100 a barrel,\nstrengthening the dollar as investors seek safe-haven assets.<\/p>\n
This explanation is plausible. But if we look deeper, there are other\nfacts to reflect on.<\/p>\n
Other regional currencies, such as the Korean won and Philippine\npeso, have weakened too, but the pressure on the rupiah appears deeper\nand longer-lasting.<\/p>\n
This is where the real challenge lies. Global factors affect all\ncountries, but the resilience of each economy is determined by its\ndomestic foundations.<\/p>\n
In other words, today\u2019s rupiah problems are not only about\ninternational volatility but also about how Indonesia\u2019s economic\nstructure responds to global pressure.<\/p>\n
Bank Indonesia deserves praise for constantly working to maintain\nfinancial-market stability. Various instruments have been deployed, from\nforeign exchange market interventions, the issuance of SRBI, purchases\nof government securities in the secondary market, to various\nstabilisation steps.<\/p>\n
This shows that the monetary authorities are moving quickly to dampen\nvolatility and maintain market confidence.<\/p>\n
Maintaining stability<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rupiah-fluctuations-as-a-catalyst-for-structural-economic-reform-1779545871", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }