Not all crises originate from erroneous policies. In many instances,\na crisis can worsen due to a failure in communication to provide\nclarity. When the government is late in explaining a situation, delivers\ninconsistent messages, or allows the public sphere to be filled with\nvarious speculations, trust erodes faster than any policy-driven\nimprovements can repair.<\/p>\n
This phenomenon was evident during the weakening of the Rupiah and\nthe Jakarta Composite Index (IHSG) in June 2026. Amidst economic\npressures, what emerged was not merely concern regarding market\nconditions, but also questions regarding the government\u2019s ability to\nmanage public communication in the midst of a crisis.<\/p>\n
In such situations, the public and market participants do not only\nrequire certainty regarding policy direction, but also explanations\ncapable of alleviating uncertainty. However, government communication\nhas not yet fully met this need.<\/p>\n
While the government has repeatedly asserted that Indonesia\u2019s\neconomic fundamentals remain strong, explanations regarding the causes\nof the Rupiah\u2019s depreciation, the fiscal condition, and the concrete\nsteps being taken have not been fully conveyed from the outset.\nSimultaneously, statements from various officials have highlighted\ndifferent aspects, failing to form a single, consistent narrative.\nConsequently, the information space was first filled with various\nanalyses and speculations that influenced the perceptions of both the\npublic and market players.<\/p>\n
In financial markets, perception often moves faster than data.\nInvestors do not only observe economic indicators; they also read the\nsignals transmitted by the government.<\/p>\n
When communication is reactive and unable to provide certainty, that\nvery uncertainty can become a factor that amplifies market volatility.\nIn other words, the issue is not solely the economic condition, but the\ngovernment\u2019s ability to build confidence that the situation remains\nunder control.<\/p>\n
Interestingly, this issue has been acknowledged from within the\ngovernment itself. During the APBN KiTa press conference on Monday\n(8\/6\/2026), Finance Minister Purbaya Yudhi Sadewa admitted that one of\nthe government\u2019s weaknesses lies in public communication, which has not\nbeen able to fully explain the fiscal condition. This statement is\nsignificant as it shows that the government\u2019s challenge is not only to\nmaintain economic stability through policy, but also through the\ndelivery of information capable of building trust.<\/p>\n
This phenomenon aligns with the Situational Crisis Communication\nTheory (SCCT) developed by W. Timothy Coombs. This theory explains that\nsuccess in facing a crisis is determined not only by the quality of the\nactions taken, but also by the quality of the accompanying\ncommunication.<\/p>\n
In situations of high uncertainty, organisations need to convey\ninformation quickly, consistently, transparently, and credibly so that\nstakeholders gain certainty regarding what is happening and how the\ncrisis is being handled. Conversely, delayed, incomplete, or conflicting\ncommunication will increase uncertainty, thereby opening the door for\nspeculation that ultimately evolves into a crisis of confidence.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/when-government-communication-crisis-erodes-market-confidence-1783039849", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }