Indonesian Political, Business & Finance News

A Series of Controversial Statements by President Prabowo Subianto

| Source: TEMPO_ID Translated from Indonesian | Economy

President Prabowo Subianto has frequently made controversial statements during various speeches. Most recently, he suggested that although the Rupiah exchange rate is weakening against the US Dollar, it does not affect villagers, reasoning that villagers do not use Dollars.

These remarks were made during a speech at the launch of the Koperasi Merah Putih outlet in Nganjuk, East Java, on Saturday, 16 May 2026. The Head of State urged the public not to worry about the Rupiah’s position, which has breached the Rp 17,500 mark per US Dollar. “As long as Purbaya (Finance Minister Purbaya Yudhi Sadewa) can smile, there is no need to worry. No matter what the Dollar rate is, villagers do not use Dollars,” he stated.

The Chairman of the Gerindra Party’s statement triggered criticism from various sectors, including Syafruddin Karimi, a Professor at the Faculty of Economics and Business, Andalas University. He assessed that the statement aimed to calm the public’s psychology, as panic can exacerbate exchange rate pressures. However, he argued that public calm should not be built on the simplification of complex issues.

“Villagers indeed do not use Dollars in markets, shops, rice fields, or livestock pens. Nevertheless, they still live within a national pricing system that is heavily influenced by the Dollar,” he said. According to Syafruddin, the impact of the Rupiah’s weakness against the Dollar can be felt indirectly by rural communities. When the Indonesian currency weakens, the costs of imported oil and gas, fertiliser, animal feed, pesticides, medicines, agricultural tools, packaging plastics, and imported consumer goods also rise.

These cost increases move through the distribution chain—from ports, warehouses, distributors, and trucks to sub-district markets, farmer kiosks, and finally, rural households. “Therefore, villages do not need to pay in Dollars to feel the impact of the Dollar,” he added.

Another of Prabowo’s statements involved his description of Indonesia as a ‘family-based nation’. This was delivered during the inauguration of the Ibu Marsinah Museum and a Shelter in Nganjuk, East Java. Prabowo invited entrepreneurs to become part of ‘Indonesia Incorporated’ or this family-based nation.

“Indonesia Incorporated actually means a family-based nation. Thus, this entire nation is one corporation,” the Head of State said. He also stated that the Indonesian people are shareholders in all the assets and wealth of the country, emphasising that leaders at every level of society must fight for the people’s rights to the nation’s wealth.

“Not the other way around. It is not that leaders, officials, or those elected should collude to eliminate the people’s rights to the wealth of all Indonesia. My brothers and sisters, this is our shared struggle,” Prabowo concluded.

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