Capital Outflow Rises, Economists Urge Government to Focus on Safeguarding Economic Foundations

JAKARTA, KOMPAS.com - Pressure on the rupiah exchange rate and capital outflows are seen as pushing the government into defensive mode. Professor Rahma Gafmi from Airlangga University believes that policy focus needs to shift. The priority is no longer pursuing economic expansion. “This is no longer about chasing expansion, but about salvation. The focus is on how basic economic indicators do not collapse due to global shocks,” Rahma told Kompas.com on Monday (27/4/2026). Rahma believes the priority must shift to fiscal stability. Food and energy supplies need to be maintained. Price control also becomes a focus. Rupiah pressure is the main indicator. The exchange rate is said to have breached Rp17,300 per US dollar on 23 April 2026. Capital outflows strengthen that pressure. This situation serves as an alarm for the government to tighten fiscal discipline. Market interventions by Bank Indonesia are considered urgent. Foreign exchange liquidity for the business world needs to be maintained so that raw material imports are not disrupted. Non-strategic infrastructure projects are seen as needing to be postponed. Evaluation of populist programmes is also necessary to make spending more effective. “Budget positions should also apply to the President’s populist programmes such as Free Nutritious Meals (MBG) and Red White Village Cooperatives (KDMP) so that the survival mode being implemented is effective,” she continued.