Private Sector Deception Causes State Losses, Mining Must Be Managed by Government

Former Finance Minister Fuad Bawazier believes the rupiah will strengthen once single-door exports become active in 2027. “When the money enters the government, the foreign exchange reserves become strong, so the rupiah will start to strengthen again,” he said at a CNBC Indonesia KONEKSI event, quoted on Thursday (11/6/2026). However, this is conditional on Indonesia remaining firm in its implementation. Fuad stated that the management of Indonesia’s natural resources must be held by the government to optimise revenue and the exchange rate, rather than being handed over to the private sector. “We are strong with our natural resources, but they are given to the private sector. The private sector parks the money abroad, benefiting foreign countries,” he said. According to him, the management of natural resources in Indonesia must be majority-controlled by the government. The private sector can still participate with a smaller stake, for example, holding 20% of shares. “The key is Article 33 of the 1945 Constitution. Article 33 exists and must be implemented,” he asserted. Another step the government can take to strengthen the rupiah exchange rate, according to Fuad, is to securitise gold mines as a measure to maintain the rupiah’s value in the long term. Fuad mentioned the potential of a gold mine in the Wabu area, which studies suggest could surpass Freeport. He said the gold mine there could be securitised with rupiah denomination. “Securitisation to maintain the long-term value of the rupiah,” Fuad added.