ITB Lecturer Highlights Importance of Fiscal Credibility in Maintaining Economic Stability
A lecturer from the School of Business and Management at the Bandung Institute of Technology (SBM ITB), Dzikri Firmansyah Hakam, stated that the strengthening of the Rupiah must be accompanied by policies that maintain price stability and public purchasing power. Speaking on a Kompas TV economic programme, he noted the Rupiah’s appreciation to around Rp17,700–Rp17,900 per US dollar resulted from a combination of external and domestic factors.
According to Dzikri, the government’s evaluation of priority programmes, such as the Free Nutritious Meals (MBG) and Village Cooperatives (Kopdes), has bolstered market confidence in fiscal management rather than weakening it. “The evaluation shows that the government’s priority programmes still pay attention to governance, effectiveness, and fiscal sustainability. This is a positive signal for investors because it demonstrates a commitment to maintaining a healthy state budget (APBN) while striving to drive economic growth,” he explained.
He also addressed the recent adjustment of Pertamax fuel prices, viewing it as a step to reduce fiscal pressure when global oil prices and exchange rates increase procurement costs. However, he stressed that market-based pricing mechanisms must be applied consistently. “Policy credibility is demonstrated not only when prices are raised as costs increase, but also when prices are lowered if world oil prices weaken and the Rupiah strengthens. A transparent mechanism will help maintain public trust,” he said.
Dzikri further explained that a stronger Rupiah has the potential to suppress imported inflation, particularly in the energy, food, and raw material sectors traded in US dollars. However, he noted that the public will only feel the benefits if the reduction in import costs is genuinely passed on to domestic prices. “If the price adjustment mechanism works well, the Rupiah’s strengthening will not only be a positive indicator in financial markets but can also improve people’s purchasing power,” he added.
Regarding the evaluation of the MBG and Kopdes programmes, Dzikri emphasised that the review process does not mean the programmes are being halted. He stated that both initiatives have strategic objectives in improving public nutrition and strengthening village economies, and their implementation must be supported by good governance, measurable performance indicators, budget efficiency, and strong accountability.
He also assessed that Bank Indonesia does not need to rush to lower its benchmark interest rate. According to him, the current BI Rate of 5.50 percent has contributed to strengthening confidence in Rupiah-denominated assets. “If inflationary pressures and exchange rate volatility become more controlled, gradual monetary easing can be considered to support consumption, investment, micro, small, and medium enterprises (MSMEs), the housing sector, and labour-intensive industries,” he concluded, stressing the importance of evidence-based economic analysis in formulating macroeconomic policy.