INDEF: Government Must Maintain Credibility for Rupiah and IHSG to Strengthen

The Head of Macroeconomics and Finance at the Institute for Development of Economics and Finance (INDEF), M Rizal Taufikurahman, stated that the government must maintain the credibility of its economic policies so that the strengthening of the rupiah exchange rate and the Jakarta Composite Index (IHSG) can continue. “To maintain the strengthening trend of the IHSG and the rupiah, the government needs to continuously uphold economic policy credibility through fiscal discipline, regulatory certainty, and more effective and productive state budget management,” Rizal said on Tuesday (16/6/2026). He added that these efforts must be accompanied by accelerating structural reforms, increasing investment, strengthening the industrial sector, and improving people’s purchasing power. He said this is needed to enhance national economic productivity and competitiveness. “Sustainable financial market strengthening can only be achieved if it is supported by increasingly robust economic fundamentals and rising investor confidence in Indonesia’s economic prospects,” Rizal said. He noted that the IHSG has the potential to return to the 8,000 level within a range of 12 to 18 months. Meanwhile, the rupiah exchange rate, in a more realistic view, is predicted to recover to around Rp 16,500 per US dollar within one to two years. This projection can be realised on the assumption that global conditions become more conducive, global interest rates begin to decline, and domestic economic reforms are implemented consistently. Nevertheless, he stressed that the recovery of the IHSG and the rupiah exchange rate does not only depend on market sentiment, but is also strongly determined by the government’s ability to maintain macroeconomic stability, strengthen investment, increase productivity, and build policy credibility. “So that financial market strengthening can take place more sustainably and become a foundation for quality economic growth,” Rizal said. The rupiah exchange rate tended to strengthen at the opening of trade over the past week. On Tuesday (9/6/2026), the rupiah opened at Rp 18,134 per US dollar, then strengthened to Rp 17,900 per US dollar on Wednesday (10/6/2026). The rupiah moved to Rp 17,941 per US dollar on Thursday (11/6/2026), then strengthened again to Rp 17,930 per US dollar on Friday (12/6/2026), and continued its positive trend to Rp 17,778 per US dollar on Monday (15/6/2026). Meanwhile, the IHSG at the opening of trade over the past week was recorded at 5,344.69 on Tuesday (9/6/2026), then rose to 5,744.06 on Wednesday (10/6/2026), 5,899.27 on Thursday (11/6/2026), 5,960.27 on Friday (12/6/2026), and then 6,118.73 on Monday (15/6/2026).