Analyst: Prabowo's KEM-PPKF speech signals the government's seriousness

Jakarta (ANTARA) - Executive Director of Indonesia Political Review Iwan Setiawan says President Prabowo Subianto’s delivery of the Macro Economic Framework and the Key Policy of Fiscal Policy (KEM-PPKF) for the RAPBN 2027 to the DPR is a strong signal of the government’s seriousness towards global economic pressures and the rupiah’s depreciation. According to Iwan, presenting the KEM-PPKF directly by the President in a DPR plenary session is a rare moment because it is usually handled by the relevant minister. ‘In my view, President Prabowo Subianto delivering directly the Macro Economic Framework and the Key Parameters of Fiscal Policy for the 2027 Budget Year in the DPR RI Plenary Session is a rare and historic moment. Usually this is represented by the relevant minister,’ he said in a statement in Jakarta on Wednesday. He assessed that this move shows the President wants to emphasise that the government does not take lightly the national economic conditions affected by global dynamics, especially the rupiah’s exchange rate against the US dollar. ‘But for me, this indicates that President Prabowo places great and serious attention on the country’s economic and financial situation,’ he said. Iwan noted that the government’s attention to economic stability is important to maintain public trust and business actors amid global uncertainty that affects financial markets and investment. ‘In particular, the President is very concerned about the depreciation of the rupiah against the US dollar. Prabowo also wants to stress that he and his administration do not take the Indonesian economy lightly given the current global situation,’ he added. He continued that the government also needs to articulate optimism and a clear direction for economic policy so as not to spark unrest among the public or the business world. ‘Nevertheless, the President must reassure and give optimism to the people and to all parties,’ Iwan said. He hopes that the direct delivery of the KEM-PPKF RAPBN 2027 would bolster investor confidence in Indonesia’s economic stability and encourage new investment. ‘We hope the government can soon address the depreciation of the rupiah, and may what the President has said restore investor confidence and prompt them to invest in Indonesia,’ Iwan said.