Public cautioned against hasty economic assessments based solely on rupiah exchange rate
REPUBLIKA.CO.ID, JAKARTA — Gerindra Party DPR member Azis Subekti has warned the public not to hastily assess the national economic health based solely on rupiah exchange rate movements or high government spending growth in the first quarter.
According to Azis, various economic indicators must be viewed holistically to avoid drawing incorrect conclusions about Indonesia’s economic fundamentals.
“Democracy naturally allows for criticism and differing viewpoints. However, we must honestly examine the data comprehensively. The economy cannot be interpreted from just one or two standalone figures,” Azis Subekti told journalists in Jakarta on Sunday, 31 May 2026.
Recent public discourse has been dominated by debates over the rupiah’s weakening to nearly Rp17,800 per US dollar and data from Statistics Indonesia (BPS) showing government consumption grew 21.81% in the first quarter of 2026.
From these two indicators, various assessments have emerged, ranging from concerns that Indonesia’s economy is facing serious pressure to accusations that current growth is solely supported by government spending.
Azis said these views need to be placed in a broader context.
“Government consumption has indeed grown significantly, but that does not automatically mean it is the main pillar of the national economy. We must look at Indonesia’s overall economic structure,” he said.
He explained that government consumption accounts for only about 6.7% of the national Gross Domestic Product (GDP), whereas household consumption remains the backbone of the economy, contributing around 54%.
Therefore, he said, the narrative that Indonesia’s economy is solely driven by government spending is not entirely accurate.
Azis said Indonesia’s greatest strength lies not in financial markets or exports alone, but in its large domestic market and the resilience of the people’s economy.
He said the economic activities carried out by millions of citizens daily form the foundation that allows Indonesia to withstand global volatility.
However, Azis warned that optimism about domestic strength should not lead the government to ignore signals from global financial markets.