House of Representatives Urges Ministry of Finance and Bank Indonesia to Consolidate Fiscal and Monetary Policies to Stabilise Rupiah

Jakarta (ANTARA) - The Deputy Speaker of the House of Representatives (DPR RI), Cucun Ahmad Syamsurijal, has urged the Ministry of Finance and Bank Indonesia to immediately undertake fiscal and monetary consolidation to tackle the phenomenon of the weakening rupiah, which has now surpassed Rp18,000 per US dollar.

According to him, Bank Indonesia understands the necessity of conducting monetary operations annually when fluctuations occur regarding the rupiah. “We request the Minister of Finance to remain solid with Bank Indonesia in executing these fiscal and monetary functions,” said Cucun at the parliamentary complex in Jakarta on Thursday.

Cucun stated that the movement of the exchange rate must be addressed effectively. He noted that the DPR RI has approved the Bill regarding the Amendment to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK), which has now been enacted into law.

Through the P2SK Law, the government can implement various schemes and creative measures to curb the rate of the rupiah’s depreciation. “That is important; it is what must be done immediately. Regardless of who takes the initiative, whether it be the Minister of Finance or Bank Indonesia, consolidation must occur,” he added.

Meanwhile, the Deputy Speaker of the DPR RI, Saan Mustopa, expressed confidence that the relevant ministries are continuously striving to prevent the downward trend of the rupiah from deepening. Saan noted that the government has set a target exchange rate for the rupiah against the US dollar within the range of Rp16,800 to Rp17,500 per US dollar.

To achieve this, he requested that efforts be implemented as soon as possible. “This must be handled with absolute seriousness by all authorities responsible for managing the situation,” said Saan.