Former BI Governor Recalls 2005 Crisis Experience to Prabowo

Jakarta — Former Governor of Bank Indonesia (BI), Burhanuddin Abdullah, has recounted his experiences in facing the crisis that occurred in 2005 to President Prabowo Subianto. The BI governor for the 2003-2008 period said he hoped his experiences could serve as a lesson.

“Cerita masa lalu, ada event yang dulu juga pernah kejadian. Barangkali bisa dijadikan pelajaran sekarang gitu,” Burhanuddin told reporters after meeting Prabowo at the Istana, Jakarta, on Friday 22 May 2026.

He spoke about the government’s steps when raising fuel prices (BBM) in 2005.

“No, that’s not it. For example, in 2005 we increased BBM by 126 percent. It was only the source that differed; now it is external, previously domestic did the hikes. That is also because external factors, I mean external factors. And then the impacts are the same as now,” he explained.

“The first was 75, the second 100 basis points, taking from 8 percent at the time to 12.5 percent. That impact was still positive because inflation was projected at 17 percent, so a 12.5 percent rate would still be negative in real terms,” he said.

Furthermore, he added, BI’s policy at the time produced a positive outcome for inflation during that period.

“So, after learning that the response was positive, inflation eased gradually, the rupiah stabilised, and by 2006 inflation had returned to 2004 levels,” he said.

However, he declined to disclose it publicly.

According to him, Prabowo also ordered Finance Minister Purbaya Yudhi Sadewa to study his proposal.

“There was a general thing I proposed earlier, but the President asked the Finance Minister to try to consider the forward-looking aspects of what I thought about,” he said.

Besides Burhanuddin, there were other officials in the economic sector who also gave input on experiences facing the crisis in 2005-2008.

“That is all we will study, what their input is. I have noted it; I have been ordered to study it; yes, we will study,” said Purbaya.