Minister of Home Affairs Urges Regional Heads to Monitor Impact of Rupiah Weakening on Commodity Prices

The Minister of Home Discretion, Tito Karnavian, has requested regional heads to examine the impact of the rupiah’s depreciation on the prices of goods, services, and transport on the ground. This instruction was delivered by Tito while presiding over the Inflation Control Coordination Meeting at the Ministry of Home Affairs on Monday (18/5/2026).

Tito stated that the current exchange rate of the United States dollar is putting pressure on several currencies, including the rupiah. “In this month of May, we must closely observe the developments regarding the impact, particularly the rise in oil prices and currency exchange rates. We must determine whether there is an influence or not,” Tito said during a Ministry of Home Affairs YouTube broadcast.

The former National Police Chief emphasised that direct field inspections are crucial to understanding the real-world impact of the rupiah’s weakening value. “This needs to be checked in the field by all regions—markets, prices of goods and services, and transport—to see if increases are occurring. It is very important,” he noted.

Tito reported that inflation for April (month-to-month) remained controlled at 0.13 per cent. According to the data presented, the transport sector was the primary contributor to inflation compared to food, beverages, and tobacco. “Some commodities contributing to inflation, particularly on a month-to-month basis from March to April, were highest in the transport sector,” he explained.

Meanwhile, food, beverages, and tobacco remained stable, acting as a counterbalance to the rising transport costs. Nevertheless, Tito urged all parties not to become complacent, given the ongoing geopolitical volatility. He noted that the conflict between the United States and Israel against Iran in West Asia is driving up crude oil prices. “We must not be complacent because, firstly, of geopolitics,” Tito concluded.