PMKRI Criticises Claims that Rural Residents are Unaffected by US Dollar Weakness

The Central Board of the Indonesian Catholic Student Association (PP PMKRI) has criticised remarks made by President Prabowo Subianto suggesting that rural residents are not impacted by the weakening of the rupiah against the US dollar.

Ferdinandus Wali Ate, the Presidium of Foreign Relations for PP PMKRI, strongly criticised the President’s statement regarding the rupiah’s decline to the level of Rp 17,602 per US dollar. PMKRI views the government’s narrative—claiming rural communities are safe from the impacts of currency depreciation—as a denial of global economic realities.

Ferdinandus stated that the government should not underestimate the anxieties of the grassroots population by employing political rhetoric that ignores market logic. “The statement that people in villages are unaffected simply because they do not transact in dollars is a fatal logical error. Do not offer ‘false promises’ amidst real economic pressure,” Ferdinandus said in a written statement in Jakarta on Sunday, 17 May 2026.

According to Ferdinandus, although rural communities use the rupiah for daily needs, domestic food supply chains are currently heavily dependent on international markets. He noted that more than 80 per cent of soybean commodities used for tofu and tempeh production are obtained through import schemes involving US dollar transactions.

Beyond the food sector, Ferdinandus also highlighted the vulnerability of the national energy sector. He noted that Indonesia has long been a net oil importer; therefore, the weakening of the rupiah to Rp 17,602 will automatically significantly increase the energy subsidy burden on the State Budget (APBN). He argued that the government cannot simply claim the national energy condition is safe without presenting concrete budget mitigation strategies.

Furthermore, Ferdinandus stated that the criticisms levelled by economists and civil society should be viewed as an early warning system, rather than being labelled as pessimistic narratives intended to cause chaos. He also assessed that the government’s current method of communicating with its citizens is experiencing a crisis of empathy and violates the ethics of public communication.

“Underestimating the fears of people struggling to manage household budgets due to currency-driven inflation is a dangerous act that harms social justice. When the government remains indifferent to exchange rate stability, the nation’s credibility in the eyes of investors is at stake,” said Ferdinandus.

PMKRI is urging monetary and fiscal authorities to take immediate and measured market intervention steps. Ferdinandus noted that being realistic in facing global economic pressures is far more needed by the people today than mere populist defences on the political stage.

In his speech, President Prabowo downplayed the weakening of the rupiah against the US dollar, assessing that the decline in the exchange rate does not directly impact rural communities. The Chairman of the Gerindra Party suggested that many people frequently claim the Indonesian economy is in danger due to the continuous weakening of the rupiah. “Some people always say—for some reason, I don’t understand—every little while that Indonesia will collapse, will be in chaos, and so on,” he said in Nganjuk, East Java, on Saturday, 16 May 2026.

Prabowo urged the public not to be overly concerned about the movement of the rupiah against the dollar. The former Minister of Defence stated that Indonesia’s condition remains safe compared to other countries, particularly in the food and energy sectors. He responded casually to the situation, noting that rural residents do not use foreign currency in their daily lives. “The rupiah goes this way, the dollar goes that way. People in the villages do not use dollars, do they?” he remarked.

One day prior to the speech, the rupiah had weakened to the level of Rp 17,600 per US dollar in Friday morning trading, 15 May 2026. This figure represents the highest level since the 1997-1998 Asian financial crisis.