Prabowo's Jibe Regarding Rural Communities Not Using Dollars Triggers Rupiah Decline
The Rupiah continues to experience depreciation, with spot market trading on Monday, 18 May 2026, at 10:26 WIB, seeing the currency traded at Rp 17,676 per US Dollar. This position represents a decline of 79 points, or 0.45 per cent, from its previous level of Rp 17,597 per US Dollar.
Economic and money market observer, Ibrahim Assuaibi, stated that this weakening of the Rupiah is a reaction to statements made by President Prabowo, which appeared to trivialise the strengthening of the Dollar against the Rupiah. This follows recent comments from Prabowo suggesting that people in villages have no influence whatsoever because they do not use US Dollars.
“It appears that President Prabowo’s statement has also had a fatal impact on the weakening of the Rupiah currency,” Ibrahim said in a voice message received by VIVA on Monday, 18 May 2026.
He noted that the public is aware that when the US Dollar and oil prices strengthen, it impacts massive oil imports of 1.5 million barrels per day, which places significant pressure on the Rupiah. This condition is further exacerbated by the corporate dividend season and a trend of citizens shifting their savings from Rupiah to foreign currencies.
“This is causing the Rupiah to continue weakening, compounded by the jibes from President Prabowo himself, stating that the weakening of the Rupiah currency does not affect people in villages who are said to have no acquaintance with the US Dollar,” Ibrahim remarked.
He argued that what Prabowo said was essentially a mockery of his own cabinet ministers, questioning why they have been unable to strengthen the Rupiah. “Many people believe that this mockery is being used as an excuse by the market, suggesting that Prabotwo is currently in a state of confusion as to why the Rupiah continues to weaken so significantly,” said Ibrahim.
He emphasised that the government should instead provide input on managing high oil requirements and the implementation of B50 as a supplement to fossil fuels. Furthermore, he stated that the President should focus on strategies to handle the crisis and strengthen the Rupiah, rather than making disparaging remarks about rural communities not using US Dollars.