DPR Challenges Destry to Return Rupiah to Rp16,500

Deputy Chairman of House Commission XI from the PDI-P faction, Dolfie Othniel Frederic Palit, has challenged Bank Indonesia (BI) governor candidate Destry Damayanti to return the rupiah exchange rate to Rp16,500 per US dollar. He said this level is in line with Indonesia’s economic fundamentals and is the exchange rate assumption set by the government in the 2026 state budget. The challenge was delivered during the fit and proper test for the BI governor candidate at the Parliament Complex in Senayan, Jakarta, on Wednesday (26/8).

Dolfie said BI had previously stated that the exchange rate consistent with Indonesia’s economic fundamentals refers to the macro assumptions in the state budget. “In the 2026 state budget, the rupiah exchange rate assumption is set at Rp16,500 per US dollar,” he said. He asked Destry to confirm whether the Rp16,500 level remains the reference for an exchange rate that reflects Indonesia’s economic fundamentals.

He considered the question important because the rupiah is currently around Rp17,700 per US dollar. According to him, the BI governor candidate needs to have a strategy to steer the rupiah back to that fundamental level. Dolfie then directly challenged Destry to return the rupiah to Rp16,500 if she is elected as BI governor. “So your challenge is to bring the rupiah back from Rp17,700 to Rp16,500,” he stressed.

Besides the exchange rate, Dolfie questioned the contribution of BI’s policies to economic growth. This relates to Destry’s vision of maintaining stability while promoting sustainable economic growth. Dolfie asked that BI’s contribution to the economic growth target be clearly measurable, including if growth is targeted to reach 6% in 2027. “How much is BI’s actual contribution to driving 6% economic growth?” he said.

According to Dolfie, such a measure is important so that the effectiveness of BI’s policies and policy mix can be evaluated. He argued that the central bank’s contribution to economic growth cannot be explained only in general terms.

Meanwhile, House Commission XI member from the PDI-P faction, Harris Turino, questioned the limits of BI’s intervention in defending the rupiah. He highlighted the cost of intervention when the rupiah came under pressure to around Rp17,700 per US dollar. “At what point is BI intervention considered too expensive and ineffective?” Harris asked.

Harris also asked Destry to explain the psychological limit of rupiah depreciation that can still be tolerated before BI allows market mechanisms to work. Besides the exchange rate, Harris highlighted BI’s success in keeping inflation under control. He questioned how much of the inflation achievement so far is the result of BI’s monetary policy and how much is influenced by food prices and administered prices. “What percentage of the inflation success truly comes from BI’s monetary policy?” he said.

Responding to these questions, Destry said BI cannot simply raise the BI Rate just to respond to rupiah pressure. According to her, such a decision must consider economic growth conditions that are still below potential. “BI cannot raise the BI Rate just like that to support the rupiah,” she said.

Destry explained that BI has chosen to use supporting policies through deepening the money and foreign exchange markets, including providing incentives and reducing hedging costs. These policies are aimed at encouraging fund inflows into the domestic market. Destry said the measures have helped increase inflows into instruments such as Bank Indonesia Rupiah Securities (SRBI) and government bonds (SBN).

Regarding the Rp16,500 exchange rate target, Destry said the situation still depends on economic developments and the global situation. BI has an economic growth range that is one of the considerations in determining policy. “The conditions depend on the growth range and the economic situation that occurs,” she said.

Destry also explained that inflation control cannot be done by BI alone. Inflation consists of several components that require coordination between BI, the central government, regional governments, and other relevant parties. According to Destry, core inflation, which reflects the demand side, contributes about 65% to headline inflation. Food inflation contributes about 19% and administered prices about 16%. “Inflation cannot be controlled by BI alone, so synergy is very much needed,” she said.