Prabowo urged to tackle rupiah and IHSG slump

Chairman of the Advisory Council of the Indonesian Native Entrepreneurs Association (Asprindo), Professor Didin S Damanhuri, has questioned the effectiveness of President Prabowo Subianto’s meeting with several officials from former President Susilo Bambang Yudhoyono’s (SBY) administration. He believes that President Prabowo’s actions will not be sufficient to halt the ongoing depreciation of the rupiah and the Jakarta Stock Exchange Composite Index (IHSG).

"In my view, the government, with President Prabowo as the highest leadership figure, should begin concrete measures to address factors affecting the rupiah’s exchange rate and the IHSG," Didin told media on Sunday, 24 May 2026.

"One such measure, according to Didin, is for the government to improve the governance of MBG and KDMP to make them more targeted and efficient. This would expand fiscal space and reduce the state budget deficit, while preventing the accumulation of foreign debt," he added.

"He also urged the government to reform the capital market governance, which is plagued by ‘manipulation’ by major players. This is crucial to regain trust from domestic and international investors in the capital market as a vehicle for boosting capital and industrial growth for large corporations, SMEs, and foreign entities," he said.

"Didin also warned the government to maintain a healthy climate for the capital and banking markets to encourage sound portfolio investment inflows. These steps would help Indonesia drive economic growth amid global geopolitical and economic uncertainties," he added.

Previously reported, President Prabowo Subianto met with several former officials from the administration of former President Susilo Bambang Yudhoyono (SBY) at the Presidential Palace complex in Jakarta on Friday, 22 May 2026. Among the SBY-era officials present were former Bank of Indonesia (BI) Governor Burhanuddin Abdullah (2003-2008), former National Development Planning Minister/Head of Bappenas Paskah Suzetta (2005-2009), Deputy National Development Planning Minister/Deputy Head of Bappenas Lukita Dinarsyah Tuwo, and former Indonesian Ambassador to China Sudrajat (2005-2009).

"During the meeting, they shared experiences from handling the 2008 crisis. Most of them served during the 2004-2014 period," said Economic Coordination Minister Airlangga Hartarto after accompanying President Prabowo in the meeting.