{
    "success": true,
    "data": {
        "id": 1713176,
        "msgid": "rupiah-slumps-analysts-suggest-this-to-the-government-1777647118",
        "date": "2026-05-01 21:22:00",
        "title": "Rupiah Slumps, Analysts Suggest This to the Government",
        "author": "Erlangga Djumena",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian rupiah weakened to Rp17,346 per US dollar amid ongoing external pressures from surging global oil prices and the US Federal Reserve's decision to maintain high interest rates at 3.5-3.75 per cent. Analysts attribute the depreciation to Indonesia's heavy reliance on oil imports, with daily needs at 2.1 million barrels against domestic production of just 600,000 barrels, exacerbating the current account deficit and budget shortfall given the budget assumptions of $70 per barrel and Rp16,500 exchange rate. To safeguard fiscal stability, experts recommend a temporary moratorium on major government programmes such as the Free Nutritious Meals initiative and the Red-White Village\/Urban Ward Cooperatives, redirecting funds to cover elevated import costs.",
        "content": "<p>Pressure on the rupiah exchange rate is expected to persist amid\nstrong external sentiment, particularly the surge in global crude oil\nprices and the US Federal Reserve\u2019s maintenance of high interest rates.\nThe rupiah exchange rate in the spot market weakened at the close of\ntrading on Thursday (30\/4\/2026). The Garuda currency depreciated by 0.12\nper cent to Rp17,346 per US dollar. The Fed itself announced it was\nholding its benchmark interest rate in the 3.5-3.75 per cent range in\nits latest meeting on Wednesday (29\/4\/2026). The decision was marked by\na sharp internal division, with eight officials supporting and four\nopposing, making it the most split vote since 1992. Citing Reuters on\nFriday afternoon, Brent crude oil prices reached their highest level\nsince March 2022, closing down $4.02 or 3.41 per cent at $114.01 per\nbarrel. Meanwhile, US West Texas Intermediate (WTI) crude oil also\nweakened by $1.81 or 1.69 per cent to $105.07 per barrel, after\npreviously touching $110.93 per barrel. In these conditions, the\ngovernment is advised to implement a moratorium or temporarily suspend\nthe Free Nutritious Meals (MBG) programme and the Red-White\nVillage\/Urban Ward Cooperatives (Kopdes) to maintain national fiscal\nstability. Currency and Commodities Analyst Ibrahim Assuaibi explained\nthat the rupiah\u2019s weakening is caused by the rise in global crude oil\nprices. This surge increases the government\u2019s need to purchase oil in US\ndollars. This could erode the current account balance and widen the\nbudget deficit, considering that the budget assumptions for oil prices\nare only around $70 per barrel and an exchange rate of Rp16,500 per US\ndollar. He described Indonesia\u2019s crude oil needs at 2.1 million barrels\nper day, while domestic production is only around 600,000 barrels per\nday. This means Indonesia still has to import around 1.5 million barrels\nper day. \u201cImagine Indonesia\u2019s crude oil needs at 2.1 million barrels\n(per day), I repeat this data over and over, 2.1 million barrels per\nday. Domestic oil production is only 600,000 barrels,\u201d said Ibrahim when\ncontacted by Kompas.com on Friday (1\/5\/2026). He assessed that\nstrengthening the rupiah cannot rely solely on Bank Indonesia (BI)\ninterventions. According to him, the steps the government needs to take\nare to temporarily halt major programmes such as MBG, Kopdes Merah\nPutih, and spending on main weapon system equipment (alutsista), so that\nthe budget can be focused on financing crude oil imports, which are\ncurrently quite high.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/rupiah-slumps-analysts-suggest-this-to-the-government-1777647118",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}