Economist's Advice to Maintain Rupiah Stability: Policy Synergy Needed

Jakarta, CNBC Indonesia - Director of CORE Indonesia Mohammad Faisal stated that stronger synergy and coordination are needed to address the impacts of the US-Iran war. Policymakers, he said, must foster optimism among business actors.

“Business actors are not only needed for their operations, but also to support confidence, so that policymaking and the business world can mutually reinforce each other,” Faisal said at the Central Banking Forum themed ‘Indonesia’s Economic Resilience in Facing Global Exchange Rate Volatility’, in Jakarta on Monday (13/4/2026).

If the government succeeds in keeping the real sector strong with sustained job creation, Indonesia’s economic resilience will remain solid amid global geopolitical conditions. He also noted that in recent times, there have been indications of continuously rising sales over the last five months of 2025 and into early this year.

“In 2020 during COVID, the real sector was strong. But after COVID, there was significant weakening in the real sector; this is what we must reverse,” he explained.

In the same forum, BCA’s Chief Economist David Sumual stated that besides synergy between fiscal and monetary policies, synergy is also needed for investment and trade, particularly in the real sector.

“How we attract direct investment is key, so that we do not continue to rely on hot money funds,” he said.

Business confidence is also important as a reflection of good fundamentals and rational policies. Additionally, business actors must anticipate potential crises.

“Each of us must anticipate; I think that’s a good suggestion,” he said.