Misbakhun States Rupiah Depreciation is Not as Severe as the 1998 Crisis, Provides Comparison

Jakarta, VIVA – The Chairman of Commission XI of the Indonesian House of Representatives (DPR RI), Mukhamad Misbakhun, stated that the current decline in the value of the rupiah against the US dollar cannot be directly equated to the economic crisis conditions seen in 1998.

Misbakhun shared these views during a ‘1 on 1 Legislative with Mukhamad Misbakhun’ session at the Jogja Financial Festival 2026, organised by the Indonesia Deposit Insurance Corporation (LPS) at the Jogja Expo Center, Yogyakarta.

“We must reassure the Indonesian people that the rupiah value of Rp17,800 against the US dollar is indeed a phenomenon. It is a very high figure for the present, but remember that the rupiah at its current level may have once matched the 1998 crisis,” Misbakhun said on Saturday, 23 May 2026.

According to him, the weakening of the rupiah in 1998 occurred from a much lower baseline, and the economic structure is different compared to current conditions.

“The rupiah at Rp17,500 or Rp17,800 during the 1998 crisis started from a base of Rp2,400. The rupiah now is at the level of Rp16,600, starting from the Rp16,000 range. Our economic structure situation is already different,” he explained.

Misbakhun noted that in 1998, many sectors faced heavy pressure, partly due to foreign currency-denominated loans and inadequate hedging practices. He assessed that the current situation is distinct, as the pressure on the rupiah has not led to the failure of the banking or private sectors as seen during the 1998 crisis.

“Even with the rupiah at Rp17,600, no banks or private entities have experienced failure. The current challenge is not only maintaining economic stability but also building public understanding so that people are not easily influenced by sentiments developing on social media,” said Misbakhun.

He added that public perception of economic conditions can be shaped by information that does not always represent the full reality. “Our sentiment is currently determined by social media. Our perspective is influenced by what we see on social media,” he concluded.