DPR member warns that a wave of redundancies poses a real threat to rural economies

A weakening rupiah, disrupted supply chains and rising energy prices are not only placing pressure on the economy but also potentially causing serious harm to national employment. The situation needs early anticipation to prevent it from becoming a wider social problem. Pulung Agustanto, a member of Commission IX of the DPR, says currency volatility cannot be viewed merely as a market and macroeconomic data issue; people will feel the impact directly as living costs rise and businesses face pressure. ‘What needs to be understood is that a weaker rupiah is not just a number on a trading screen. Its impact can reach households through higher living costs and pressure on jobs,’ Pulung said in a written statement on Friday, 22 May 2026. He noted that Indonesia’s economy is more integrated with the global economy and many sectors depend on imported raw materials, machinery, or components. When the dollar strengthens, energy becomes expensive and supply chains are disrupted, affecting firms’ ability to survive. ‘We do not want the option to be redundancies,’ he added. Pulung warned that redundancies do not stop at industrial zones or urban economic centers; villages could bear the next burden as workers lose jobs and return home with no income certainty. ‘If mass redundancies occur, villages will bear a wave of new unemployment. This must be anticipated before an economic crisis becomes a social crisis,’ he stated. He argued that villages cannot be seen merely as destinations for workers to return to when city economies struggle; rural economies also have limited capacity and must be prepared for possible reverse migration. ‘Let us not turn villages into a refuge for problems while their economic and social capacity are not prepared to absorb it,’ he said. He urged the government to move faster in preparing mitigation for potential labour-market impacts, strengthen worker protections, and ensure social safety nets reach those affected.