Misbakhun Reveals Difference Between 1998 and 2026 Rupiah Depreciation

Jakarta, CNBC Indonesia - House of Representatives Commission XI Chairman Mukhamad Misbakhun has stated that many parties are equating the current rupiah depreciation with the 1998 crisis, a claim widely circulating on social media.

Misbakhun emphasised that the current currency depreciation differs from the 1998 crisis. He explained that the rupiah is currently trading around Rp16,000 against the US dollar, and has weakened to approximately Rp17,717.

During the 1998 crisis, Misbakhun noted the rupiah fell from Rp2,400 to Rp17,600 per US dollar.

‘We must reassure the Indonesian public that the rupiah at Rp17,800 is indeed a phenomenon. While this is a high level for now, remember that during the 1998 crisis, the rupiah reached Rp17,500 to Rp17,800 starting from Rp2,400. The current rupiah level of Rp17,600 began from around Rp16,000. The economic structure is also different,’ Misbakhun said at the Jogja Financial Festival on Saturday, 23 May 2026.

He confirmed there are no reports of bank defaults as the rupiah touches Rp17,600 against the US dollar. ‘At present, with the rupiah at Rp17,600, no banks or private entities have announced payment failures or faced pressure,’ Misbakhun stated.

He explained that Indonesia’s economic structure today differs significantly from the 1998 monetary crisis when the rupiah breached Rp17,000 per dollar. During the 1998 crisis, an economic bubble occurred due to overheating across various sectors. Additionally, banks and private entities with foreign currency-denominated loans did not hedge their exposure.

‘Thus, when the rupiah depreciated, they defaulted,’ Misbakhun said. However, during that period, some parties also reaped unexpected windfall gains from exchange rate fluctuations. ‘The same applies today, but only in certain sectors. This means our economy’s fundamentals are strong. In 1998, growth was negative 13%, and inflation was rampant. Now, we face a growing economy,’ he stressed.