Facing Global Uncertainty, GAN Supports Economic Policy Consolidation

The Central Leadership of Garuda Astacita Nusantara (DPP GAN) supports the initiative by the Deputy Speaker of the House of Representatives, Sufmi Dasco Ahmad, to bring together the government, Bank Indonesia, and fiscal-monetary authorities to safeguard national economic stability. The meeting, held at the Parliament Complex in Senayan, Jakarta, included the Minister of State Secretary Prasetyo Hadi, Finance Minister Purbaya Yudhi Sadewa, Governor of Bank Indonesia Perry Warjiyo, and the leadership of Commission XI of the House of Representatives, Moh. Hekal. The discussions focused on coordinating fiscal and monetary policies amidst global economic pressures, with the objectives of maintaining financial sector stability, controlling inflation, and strengthening the foundations of economic growth.

Chairman of DPP GAN, Muhammad Burhanuddin, stated that global economic volatility requires a measured and coordinated response from all the nation’s economic institutions. “DPP GAN supports the efforts of Deputy Speaker Sufmi Dasco Ahmad to synergise ministries and economic agencies to accelerate economic recovery and stabilise the rupiah exchange rate,” he said in an official statement. He emphasised that synergy between the government, Bank Indonesia, the House of Representatives, and other economic institutions is vital to maintaining market confidence and ensuring national development meets its targets.

Meanwhile, the national shipbuilding industry is facing increasing cost pressures due to the strengthening of the US dollar against the rupiah. The weakening rupiah, which has reached a new psychological level after surpassing Rp18,000 per US dollar, tests not only the resilience of fiscal and monetary fundamentals but also raises significant economic questions. On Monday morning, the rupiah exchange rate opened 0.39 per cent weaker at Rp18,107 per US dollar.

According to Governor Perry Warjiyo, two steps have been agreed upon to strengthen fiscal and monetary coordination to support the stability of the rupiah. Finance Minister Purbaya Yudhi Sadewa emphasised that Indonesia’s current economic condition remains stable and is not heading towards a crisis similar to the 1997-1998 monetary crisis. He noted that priority programmes are designed to be flexible and will not disrupt national fiscal stability. Furthermore, the Minister asserted that the recent decline in the Jakarta Composite Index (IHSG) and the rupiah is driven by negative perceptions rather than the fundamental economic conditions of Indonesia. The Minister also highlighted the impact of the rupiah’s depreciation on small businesses, particularly tofu and tempeh traders. In response, the government and Bank Indonesia have agreed to increase the remuneration or interest on government funds placed within the central bank.