Response to Prabowo's Rupiah Target, Surya Paloh: Hopefully We Can Maintain Optimism

President Prabowo Subianto has outlined macroeconomic assumptions in his speech presenting the Macro Economic Framework and Key Fiscal Policies (KEM-PPKF) for the 2027 Fiscal Year, in which he set a rupiah exchange-rate target of Rp16,800 to Rp17,500 per US dollar for 2027. The target will serve as the blueprint for the 2027 State Budget (RAPBN 2027). ‘We will keep the exchange rate at Rp16,800 - Rp17,500 per dollar. The fiscal and monetary strategies must be capable of keeping our exchange rate stable against world currencies,’ he stressed.

NasDem Chairman Surya Paloh responded, saying that amid the rupiah’s recent weakness, maintaining optimism is the key for all elements of the nation. ‘Besides optimism, what else do we have? That is perhaps what we need to understand here,’ he said after attending the 19th Plenary Session of the House of Representatives, May 20, 2025. He noted that in the face of global economic uncertainty that directly affects exchange-rate fluctuations, protracted argument without direction will not solve problems. He believes hope and shared belief are fundamental capital for national stability. ‘Our last capital is optimism itself. If we keep arguing, then we probably do not need to argue; we just keep optimism,’ he added. ‘If optimism fades, we will have nothing left. But hopefully we can maintain that optimism.’

Earlier, President Prabowo delivered macro-assumption points in his speech presenting the Macro-Economic Framework and the Core Policies of the Fiscal (KEM-PPKF) for the 2027 Fiscal Year. In his speech, Prabowo announced the rupiah target at Rp16,800 - Rp17,500 per US dollar for 2027. This assumption in the KEM-PPKF will serve as the blueprint for the 2027 RAPBN.

“We will keep the exchange rate at Rp16,800 - Rp17,500 per dollar. The fiscal and monetary strategies must be able to keep our exchange rate stable against world currencies,” he affirmed. (E-4)

Finance Minister Purbaya Yudhi Sadewa stated that debt-financing realisation reached 36.7% of the 2026 State Budget ceiling, with the government ensuring credible fiscal management. He emphasised that Indonesia’s fiscal fundamentals remain healthy with a debt ratio around 40% despite rupiah weakness.

A depreciation of the rupiah against the US dollar has raised concerns in the domestic automotive industry. A sociologist from Gadjah Mada University, Arie Sujito, warned of social impacts arising from the rupiah’s weakness.

Business circles in Batam have begun to fear the rupiah’s exchange-rate movement against the US dollar, with talks that it could touch Rp18,000.

NasDem Chairman Surya Paloh remains optimistic about a rupiah appreciation following President Prabowo Subianto’s remarks on the KEM-PPKF 2027 in the DPR. He urged party cadres to reinforce and consolidate the party’s ranks to face evolving political dynamics.

Note: Simak daftar ketua umum partai politik… (omitted context alert)